Costs to Lebanon of Latest Israel-Hezbollah War

Lebanon has experienced its deadliest conflict spillover since the US-Israeli strikes on Iran in early 2025, with casualties exceeding those in Iran itself. From March 2 to June 14, Lebanon’s health ministry reported at least 3,783 deaths and 11,699 injuries, including 247 children, 363 women, and 133 healthcare workers. The toll surpasses Iran’s 3,468 deaths and exceeds Lebanon’s previous Israel-Hezbollah war fatalities (3,768 in 2023–2024). Meanwhile, Israel recorded 28 soldier deaths in Lebanon, compared to 73 in the prior conflict. Israeli airstrikes and ground operations have devastated southern Lebanon, destroying hospitals, power stations, and water infrastructure. Over 68,000 housing units were damaged or destroyed by May 17, with 30,000 in the south and 8,000 in Beirut, costing an estimated $365 million in the capital alone. Israeli forces flattened villages near the border to disrupt Hezbollah’s operations. More than 1.2 million people have been displaced since March, with hundreds of thousands fleeing Beirut’s southern suburbs after evacuation orders. Many remain displaced due to destroyed homes or skepticism about the US-Iran ceasefire’s durability. Economically, Lebanon faces a 7% GDP contraction in 2025, according to Finance Minister Yassine Jaber, reversing recovery efforts after the 2023–2024 war, the 2020 Beirut port explosion, and the 2019 financial collapse. The World Bank estimates $8.5 billion in losses, with Lebanon’s GDP shrinking 7.1% in 2024 alone, compounding a 40% decline since 2019.