Israel and Lebanon agree to terminate 78‑year state of war

Israel and Lebanon have jointly declared their intention to officially end the 78‑year state of war that dates back to the 1948 Arab‑Israeli conflict. The announcement follows the 2026 Lebanon war that began in March and has caused more than 4,000 casualties, as well as a fragile cease‑fire agreement reached in June.

Hezbollah, the Iran‑backed militant group operating in Lebanon, has rejected the Lebanese government’s peace deal, leaving its stance critical to any lasting settlement. International actors, including the United Nations and U.S.‑brokered talks, are watching for Hezbollah’s response and for further diplomatic steps that could broaden the cease‑fire into a permanent peace agreement.

Analysts note that market pricing reflects an increased probability of a peace deal by the end of July, but the durability of any agreement will depend on Hezbollah’s acceptance and the Lebanese government’s ability to negotiate effectively.