Lebanon Economy Minister Warns of Existential Shock from Iran War

Lebanon's Economy Minister Amer Bisat describes the economic impact of the ongoing U.S.-Israeli war with Iran as existential for the country. Already grappling with a severe financial crisis since 2019 that devastated its banking system and currency, Lebanon faces compounded woes from the recent conflict. The war, which included Israeli strikes on Hezbollah and the closure of the Strait of Hormuz, has triggered sharp inflation, widespread job losses, and a collapse in tourism. Minister Bisat estimates the war has caused an economic loss equivalent to 7% of Lebanon's GDP. Approximately 1.2 million people have been displaced, primarily from southern Lebanon and Beirut's southern suburbs, exacerbating poverty levels that already affect half the population. Local businesses, from retail stores to restaurants, are shutting down or struggling due to soaring costs, supply chain disruptions, and reduced consumer spending. The situation is further aggravated by unregulated markets prone to price gouging and a fragile infrastructure reliant on expensive diesel generators. This new shock threatens to undo any potential recovery from previous crises, leaving the nation in a precarious state with little immediate hope for rebuilding or economic stabilization.