**Lebanese officials have repeatedly stated that full diplomatic and economic normalization with Israel remains far off, despite recent U.S.-brokered talks and a June 2026 trilateral framework agreement focused on phased security measures, Hezbollah disarmament in southern zones, and Lebanese Armed Forces deployment.** Prime Minister Nawaf Salam and President Joseph Aoun have tied any deeper relations to the 2002 Arab Peace Initiative, which conditions normalization on Palestinian statehood—an outcome opposed by the current Israeli government. Hezbollah has rejected the framework outright, complicating implementation. With only months left before 2027 and ongoing domestic constraints in Lebanon, including limited public support for normalization, traders see these structural barriers as decisive in the near term.