Israel and Lebanon signed a U.S.-mediated framework agreement in June 2026 that includes mutual recognition of sovereignty, phased Israeli redeployment from pilot zones in southern Lebanon, and a process to disarm Hezbollah in exchange for restoring Lebanese state authority. The accord is framed explicitly as an initial step toward ending the state of war rather than immediate diplomatic normalization or full bilateral relations. Hezbollah leaders have rejected the deal as illegitimate and vowed continued resistance, while Israeli officials have conditioned any further withdrawals on verified disarmament and security guarantees. Implementation faces substantial domestic Lebanese political resistance and requires complex verification mechanisms unlikely to advance rapidly. These barriers sustain trader consensus that comprehensive normalization remains improbable before the end of 2026.