Israeli and Lebanese officials signed a U.S.-brokered framework agreement in June 2026 that established two small pilot zones—one north and one south of the Litani River—where Israeli forces would hand limited territory to the Lebanese Armed Forces after verification steps, as a sequenced process tied to Hezbollah disarmament and dismantlement of its infrastructure. Israeli leaders have repeatedly stated that any broader redeployment from the roughly 10 km security zone inside southern Lebanon depends on Hezbollah no longer posing a threat, with Prime Minister Netanyahu and Defense Minister Katz emphasizing an extended presence until that condition is met. As of late September 2026, the IDF continues targeted operations, including large-scale demolitions of Hezbollah sites such as the Ali al-Taher ridge, while rejecting timelines for full withdrawal. Hezbollah has rejected the framework and maintains its armed presence, creating ongoing uncertainty around implementation of further steps. Scheduled diplomatic contacts and the approaching end of the UNIFIL mandate add near-term variables that traders monitor for any shift in the conditions-based approach.