TOPSHOT - An explosion erupts in the area of al-Housh following Israeli bombardment as seen from Tyre in southern lebanon on May 12, 2026. Israel has intensified its attacks in south Lebanon as it trades fire with Iran-backed Hezbollah despite an April 17 ceasefire between Israel and Lebanon that aimed to halt the fighting. (Photo by Kawnat HAJU / AFP via Getty Images)
CHIYAH, Lebanon (AP) — The U.S.-Israeli war with Iran, and the closure of the Strait of Hormuz, have sent economic shock waves across the Mideast. In Lebanon, those woes have been compounded by the country’s existing economic problems and by largely unregulated markets that are vulnerable to price gouging. Lebanon was already battered in Hezbollah and Israel’s last war, which ended in late 2024 and cost the country an estimated $11 billion in damage and economic losses. The renewed fighting made the situation worse. Now 1.2 million Lebanese have been displaced. Many are sheltering in schools with no work or draining whatever money they have renting out apartments or hotel rooms.
(Copyright 2026 The Associated Press. All Rights Reserved.)
