Does the Israel-Lebanon framework deal offer hope for business? Possibly.
What is the business community meant to make of the latest Israel-Lebanon framework deal? Do we just write it off as Iran wants, or do we prepare to do business with Lebanon?
The Lebanese economy is service-oriented but it isn’t in good shape. The World Bank Group, EU and UN launched in 2020 a reform, recovery and reconstruction framework plan (3RF). A reform minded government was established in 2025.
Latest Lebanon agreement:
A trilateral “Framework” between the USA, State of Israel and Republic of Lebanon was signed by the parties in English and released by the US Department of State on June 26, 2026 (https://www.state.gov/releases/office-of-the-spokesperson/2026/06/trilateral-framework-between-the-united-states-of-america-the-state-of-israel-and-the-republic-of-lebanon).
This “Framework” is an affirmation rather than an agreement, but at least it was signed. Below is an overview.
In the Framework, Israel and Lebanon affirm the right of each state to exist in peace and to formally conclude any state of war between them (Section 1).
Pursuant to an unpublished Security Annex, and as part of the broader effort toward the Lebanese state’s monopoly of arms and sovereign territorial control, the LAF (Lebanese Armed Forces) will gradually assume full and effective security responsibility in two pilot zones, and future pilot zones will also be agreed upon by mutual consent (Section 2).
The Government of Israel stresses that its military actions in Lebanon are solely a consequence of the attacks, threat and hostile intent of non-state armed groups, particularly Hizballah… the Government of Israel has no territorial ambitions in Lebanon (Section 5).
The Government of Lebanon, in accordance with the Charter of the United Nations .. holds the exclusive sovereign authority to make war and peace (Section 6). The security of Israel’s northern communities, are essential to long-term stability and peace (Section 8).
There will be a military coordination group with US support and participation and disarmament of all non-state armed groups (Sections 7&8).
The economic side:
Separately, and simultaneously, the United States will rally international partners to actively support the Government of Lebanon in rebuilding the country, repairing infrastructure, restoring the economy, and creating opportunities for prosperity. This is expected to include mobilizing substantial reconstruction and humanitarian assistance for Lebanon, economic recovery programs, and investment initiatives so that Lebanon can recover from years of conflict and provide a better future for all its citizens (Framework Section 10).
Implementation:
The “Framework” sets out a series of planned implementation steps (Sections 11-14). First, prevent funds flowing to any entity, organization or individual with non-state armed groups, including reconstruction funds. Second, establish working groups to draft a full comprehensive peace and security agreement. Third, take good faith measures. Fourth, cessation of all hostile or adverse actions in international political or legal fora. Fifth, search for and return of remains (presumably Ron Arad, pilot) and release of detainees.
Earlier Lebanon agreement:
The United States coordinated an agreement which was deposited with the United Nations on October 27, 2022. This said that Israel and Lebanon had agreed to establish a maritime boundary line (the “MBL”).
According to the MBL agreement, a hydrocarbon prospect of unknown commercial was thought to straddle two areas known as Block 72 of Israel (near the Karish gas field) and Block 9 of Lebanon (known as the Qana prospect). Exploration and exploitation of the Prospect were to be carried out in accordance with good petroleum industry practices. The parties agreed that a reputable international operator would explore and exploit Block 9. Israel would be remunerated by the Block 9 operator for its rights to any potential deposits in the Prospect.
Unfortunately, this didn’t work out. Elai Rettig, an assistant professor in Energy Politics at Bar-Ilan University noted in the Jerusalem Post of April 20, 2026: “There’s no gas in the Qana prospect. In 2023, TotalEnergies announced it did not find commercial gas reserves in that field and abandoned Block 9 entirely. The more interesting issue is Block 8, which is beyond this map, which TOTAL wants to explore.” (https://www.jpost.com/middle-east/article-893604).
Comments:
Hizballah elements have called this a capitulation. But it seems a majority of Lebanese people want to give peace a chance, as the Irish did in 1998. All in all, it seems the trilateral Framework is tristate building permit that lays the foundations for the next Trump Tower. This won’t be another New York skyscraper, it could be a Noble Peace Prize which would be a towering achievement for Trump, Witkoff and Kushner. Let’s see if any entrepreneurs get going now in these parts.
As always, consult experienced professional advisors at an early stage in specific cases.
The writer is a certified public accountant and tax specialist at Harris Consulting & Tax Ltd.