Israeli forces crossed and expanded operations north of the Litani River during May 2026 fighting in southern Lebanon, reaching areas up to the Zahrani River and seizing sites such as Beaufort Castle despite an April ceasefire. Subsequent US-mediated framework agreements established conditions-based redeployment tied to Hezbollah disarmament south of the river, Lebanese Armed Forces deployment, and verification through a Military Coordination Group. Partial handovers of designated pilot zones took place in July 2026, with the Lebanese army assuming positions in select areas, but broader withdrawal hinges on verified compliance and remains subject to ongoing bilateral and trilateral talks. Market pricing incorporates these implementation risks, potential for phased progress or delays, and any new diplomatic or security developments within the resolution window.