Israeli ground operations remain concentrated in southern Lebanon, with forces advancing north of the Litani River and capturing positions such as Beaufort Castle amid ongoing clashes with Hezbollah. A U.S.-facilitated partial ceasefire announced in early June commits Israel to refrain from strikes on Beirut’s southern suburbs in exchange for Hezbollah halting attacks on Israel, though limited violations including a June 7 airstrike have occurred. Diplomatic efforts continue to extend de-escalation measures and establish pilot zones, while ground incursions have not extended toward the capital. Trader assessments reflect these constraints, alongside scheduled talks and the risk of renewed escalation tied to southern fighting or Iranian involvement.