Israeli forces continue entrenching positions and conducting targeted strikes, artillery fire, and drone operations in southern Lebanon to prevent Hezbollah regrouping, despite the June 2026 U.S.-mediated framework agreement calling for phased withdrawal tied to Lebanese Armed Forces deployment and Hezbollah disarmament. Recent developments include fortification of new bases, road networks, and a security buffer zone, alongside reports of Hezbollah rearming with Iranian support. Implementation of pilot zones remains stalled amid Israeli assessments that the Lebanese army lacks capacity for full enforcement, while the UNIFIL mandate expires December 31, 2026. These factors sustain low-intensity hostilities and shape trader views on the timing and scope of any further Israeli military action.