Israeli forces remain focused on operations in southern Lebanon, where the IDF recently demolished a major Hezbollah underground tunnel network beneath the Ali Taher Ridge using over 1,100 tons of explosives in mid-September. Defense Minister Israel Katz has stated that troops will maintain a security zone until Hezbollah is fully disarmed, with ongoing demolitions, artillery fire, and patrols reported in areas such as Bint Jbeil and Tyre districts as of September 15. Bilateral talks with Lebanon, including recent envoy meetings in Washington, have produced limited progress, while a planned round in Rome was delayed until October. Low-altitude flights have occurred over Beirut's southern suburbs, but no ground movements toward the capital have been confirmed. These southern-focused developments and stalled diplomacy on withdrawal timelines shape trader assessments of escalation risks.