Lebanon's economy is experiencing severe strain as the ongoing conflict between Israel and Hezbollah compounds the country's existing financial crisis, according to government officials and business owners. Economy Minister Amer Bisat estimates the war has caused economic losses equivalent to around 7% of the country's gross domestic product due to business closures, job losses, and the absence of tourism.

The current conflict has displaced 1.2 million Lebanese people, largely from southern Lebanon and Beirut's southern suburbs. Many are sheltering in schools without work or spending their savings on temporary housing. The displacement has further disrupted an economy already severely weakened by a crisis that began in 2019.

Since 2019, Lebanon has been experiencing an economic collapse that destroyed the value of its local currency and banking system. The Lebanese pound has lost over 90% of its value against the U.S. dollar, and the banking sector suffered approximately $70 billion in losses. About half of the country's 6.5 million residents have been pushed into poverty following the collapse of banks that held depositors' savings.

Businesses across Lebanon are reporting significant revenue drops and rising operational costs. Restaurant and bar owner Riad Aboulteif said his revenue has fallen by 90% since the war began, forcing him to reduce staff and restructure menus with more affordable options. In produce markets, vendors report customers walking away due to high prices, while generator bills for electricity have doubled in some areas.

The government has conducted over 4,000 inspections of generators, gas stations, and shops since March to address price gouging, according to Bisat's ministry. However, the bankrupt government has limited capacity to regulate markets or crack down on companies that control fuel and essential goods imports. The World Bank estimates the 2024 Israel-Hezbollah conflict added approximately $11 billion in additional losses to Lebanon's already damaged economy.

With a nominal truce in place that has reduced but not halted fighting, and no clear end to the broader regional conflict in sight, Lebanese families and business owners continue to face daily economic challenges while hoping for stability to return.