Lebanese Economy Minister Says Conflict with Israel Already Cost $20 Billion, Warns of Rising Social Unrest

Lebanon’s economy minister, Amin Salam, has warned that the ongoing conflict between Israel and Hezbollah has already cost his country a staggering $20 billion, a figure he expects to continue rising, Bloomberg reports.

Salam, in an interview in Washington on Thursday, cited the near-total shutdown of tourism and agriculture, damage to buildings, and a surge in unemployment as major contributors to the economic devastation. He further emphasized that the damage could “really triple or quadruple” if Israel expands its strikes to infrastructure, such as airports and major roads.

The minister highlighted the plight of the Lebanese people, with over a fifth of the 5.5 million population displaced, many fleeing to neighboring Syria. He expressed concern about the rising risk of social unrest, warning that it could destabilize the entire region.

Salam emphasized the urgency of de-escalating the conflict, stating, “It’s not in the interest of the Israelis and not in the interest of the region as a whole to turn Lebanon into a failed state because it’ll turn into a land of terrorism, a land of destruction.”

The conflict escalated in September when Israel intensified its campaign against Hezbollah, an Iran-backed militant group in Lebanon, after diplomatic efforts to stop Hezbollah’s attacks failed. Israel has targeted key Hezbollah leaders, including long-standing chief Hassan Nasrallah, and deployed ground troops into southern Lebanon.

Hezbollah, one of the most powerful militia groups in the world, operates largely independent of the Lebanese state. While Israel claims its campaign is aimed at securing the return of displaced citizens and weakening Hezbollah’s threat, the militant group has vowed to continue firing missiles into Israel.

Lebanon’s economy has been struggling for years, with inflation soaring at nearly 35% and the country defaulting on billions of dollars in international bonds.

Salam expressed doubt that fighting would end this year, but predicted a push for a ceasefire from the next US president, whether it is Vice President Kamala Harris or former President Donald Trump.