Israeli military operations in southern Lebanon have centered on advancing against Hezbollah positions, with forces crossing the Litani River and conducting strikes and ground maneuvers near Nabatieh throughout spring and early summer 2026. Reports from late May and June indicated Israeli troops reaching the outskirts of the city and preparing potential offensives into one of Hezbollah’s strongholds, amid broader efforts to establish security buffers. A U.S.-brokered ceasefire framework emerged in July, prompting partial Israeli withdrawals from some Nabatieh district locations and initial Lebanese army deployments, though sporadic shelling and incidents near troop movements have continued. Trader sentiment reflects uncertainty over whether full entry occurred by key deadlines, the durability of de-escalation steps, and risks of renewed escalation tied to Hezbollah rocket activity or Israeli security demands.