Fearing Israeli Strikes, Residents Flee South Beirut Hezbollah Stronghold

 A man walks on an overpass beneath a giant billboard that reads "Enough, we are tired, Lebanon doesn't want war" on a street in Beirut on August 7, 2024, amid regional tensions during the ongoing war between Israel and the Palestinian Hamas movement in the Gaza Strip. (AFP)
A man walks on an overpass beneath a giant billboard that reads "Enough, we are tired, Lebanon doesn't want war" on a street in Beirut on August 7, 2024, amid regional tensions during the ongoing war between Israel and the Palestinian Hamas movement in the Gaza Strip. (AFP)
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Fearing Israeli Strikes, Residents Flee South Beirut Hezbollah Stronghold

 A man walks on an overpass beneath a giant billboard that reads "Enough, we are tired, Lebanon doesn't want war" on a street in Beirut on August 7, 2024, amid regional tensions during the ongoing war between Israel and the Palestinian Hamas movement in the Gaza Strip. (AFP)
A man walks on an overpass beneath a giant billboard that reads "Enough, we are tired, Lebanon doesn't want war" on a street in Beirut on August 7, 2024, amid regional tensions during the ongoing war between Israel and the Palestinian Hamas movement in the Gaza Strip. (AFP)

Batoul and her family have been scrambling to secure housing outside Beirut's southern suburbs where an Israeli strike killed a senior Hezbollah commander last week, but spiking demand has sent prices soaring.

Many in the southern suburbs -- a packed residential area known as Dahieh which is also a Hezbollah bastion -- have been trying to leave, fearing full-blown war between the Iran-backed group and Israel in the wake of the commander's killing.

"We are with the resistance (Hezbollah) to death," said Batoul, a 29-year-old journalist, declining to give her last name as the matter is sensitive.

"But it's normal to be scared... and look for a safe haven," she told AFP.

Iran and its regional allies have vowed revenge for the killing, blamed on Israel, of Hamas's political leader Ismail Haniyeh in Tehran last week, just hours after the Israeli strike in Beirut's southern suburbs killed Hezbollah's top military commander Fuad Shukr.

Hezbollah has traded near-daily fire with Israeli forces in support of ally Hamas since the Palestinian militant group's October 7 attack on Israel triggered war in Gaza.

After the twin killings, fears have mounted of an all-out war, with foreign airlines suspending Beirut flights and countries urging their nationals to leave.

Last week's Beirut strike also killed an Iranian adviser and five civilians -- three women and two children.

"Whoever says they want to stay in Dahieh while it's being bombed is lying to themself," Batoul said.

- 'No choice' -

On Tuesday, Hezbollah chief Hassan Nasrallah said his Shiite movement and Iran were "obliged to respond" to Israel "whatever the consequences".

Batoul said she had been trying unsuccessfully to rent in "safe areas" -- unaffiliated to Hezbollah -- outside Beirut, but landlords were charging "exorbitant prices".

She said one landlord cancelled suddenly even after she agreed to pay six months' rent in advance for a flat in the mountain town of Sawfar.

A 55-year-old teacher and Hezbollah supporter, who requested anonymity because the matter is sensitive, said she felt lucky to find a flat about 15 kilometers (nine miles) outside Beirut.

But it came with a price tag of $1,500 a month, in a country battered by more than four years of economic crisis.

The teacher, also a Dahieh resident, said price gouging was rampant, noting another apartment was listed online for $1,500 a month "but when we arrived, they asked for $2,000".

"They know we have no choice. When there is a war, people will pay any amount of money to be safe," she said.

But "many people will stay (in Dahieh) because they cannot afford to rent," she added.

Riyad Bou Fakhreddine, a broker who rents out homes in the Mount Lebanon area near Beirut, said apartments were being snapped up "within half an hour to an hour of being listed".

Some landlords have asked him to raise apartments normally priced at around $500 a month to as high as $2,000, he said.

He said he refused.

"I tell them I'm not a crisis profiteer. I don't want to take advantage of people's fears," he said.

- 'Polarization' -

Almost 10 months of cross-border violence have killed some 558 people in Lebanon, most of them fighters but also including at least 116 civilians, according to an AFP tally.

On the Israeli side, including in the annexed Golan Heights, 22 soldiers and 25 civilians have been killed, according to army figures.

Ali, who rents serviced apartments in central Beirut, said his phone had "not stopped ringing" ahead of Nasrallah's speech.

"I booked 10 flats in two days," he said.

"Many people walked in and booked on the spot... Or called me and were here within an hour," said the 32-year-old, who requested to be identified only by his first name.

In 2006, Hezbollah fought a devastating war with Israel, whose air force bombarded Beirut's southern suburbs nightly for a month, flattening hundreds of apartment blocks.

Back then, many people from across Lebanon's sectarian divides expressed support for Hezbollah and solidarity with the Shiite Muslim community, many of whom lost their homes and livelihoods.

But this time, Dahieh resident Batoul said solidarity was lacking, with politicians divided after Hezbollah decided unilaterally to begin attacking Israeli positions on October 8.

In 2006, "there wasn't such polarization," she said.

Landlords and others profiting from high demand on housing now are simply driven by greed, Batoul said.



Iran’s Rulers Caught Between Trump’s Crackdown and a Fragile Economy 

Iran's Supreme Leader Ali Khamenei speaks during a meeting with Iranian students in Tehran, Iran, March 12, 2025. Office of the Iranian Supreme Leader/WANA (West Asia News Agency)/Handout via Reuters
Iran's Supreme Leader Ali Khamenei speaks during a meeting with Iranian students in Tehran, Iran, March 12, 2025. Office of the Iranian Supreme Leader/WANA (West Asia News Agency)/Handout via Reuters
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Iran’s Rulers Caught Between Trump’s Crackdown and a Fragile Economy 

Iran's Supreme Leader Ali Khamenei speaks during a meeting with Iranian students in Tehran, Iran, March 12, 2025. Office of the Iranian Supreme Leader/WANA (West Asia News Agency)/Handout via Reuters
Iran's Supreme Leader Ali Khamenei speaks during a meeting with Iranian students in Tehran, Iran, March 12, 2025. Office of the Iranian Supreme Leader/WANA (West Asia News Agency)/Handout via Reuters

For Iran's clerical leaders, engaging with the "Great Satan" to hammer out a nuclear deal and ease crippling sanctions may for once be the lesser of two evils.

Though it harbors deep mistrust of the United States, and President Donald Trump in particular, Tehran is increasingly concerned that mounting public anger over economic hardships could erupt into mass protests, four Iranian officials said.

That's why, despite the unyielding stance and defiant rhetoric of Iran's clerical leaders in public, there is a pragmatic willingness within Tehran's corridors of power to strike a deal with Washington, the people said.

Tehran's concerns were exacerbated by Trump's speedy revival of his first term's "maximum pressure" campaign to drive Iran's oil exports towards zero with more sanctions and bring the country's already fragile economy to its knees, they said.

President Masoud Pezeshkian has repeatedly highlighted the severity of the economic situation in the country, stating that it is more challenging than during the Iran-Iraq war in the 1980s, and pointing this month to the latest round of US sanctions targeting tankers carrying Iranian oil.

One of the Iranian officials said leaders were concerned that cutting off all diplomatic avenues might further fuel domestic discontent against Ali Khamenei - given he is the ultimate decision maker in the country.

"There is no question whatsoever that the man who has been the Supreme Leader since 1989 and his foreign policy preferences are more guilty than anybody else for the state of affairs," said Alex Vatanka, director of the Iran Program at the Middle East Institute think-tank in Washington.

It was Iran's weak economy that pushed Khamenei to give tentative backing to the nuclear agreement struck with major powers in 2015, leading to a lifting of Western sanctions and an improvement in economic conditions. But then-President Trump's renewed onslaught against Iran after he pulled out of the nuclear pact in 2018 squeezed living standards once more.

"The situation worsens daily. I can't afford my rent, pay my bills, or buy clothes for my children," said Alireza Yousefi, 42, a teacher from Isfahan. "Now, more sanctions will make survival impossible."

Iran's foreign ministry did not respond to a Reuters request for comment.

'ON EQUAL TERMS'

At the same time as upping the pressure on Iran with new sanctions and threats of military action, Trump also opened the door to negotiations by sending a letter to Khamenei proposing nuclear talks.

Khamenei spurned the offer on Wednesday, saying repeatedly that Washington was imposing excessive demands and that Tehran would not be bullied into negotiations.

"If we enter negotiations while the other side is imposing maximum pressure, we will be negotiating from a weak position and will achieve nothing," Iran's top diplomat Abbas Araqchi told the Iran newspaper in an interview published on Thursday.

"The other side must be convinced that the policy of pressure is ineffective - only then can we sit at the negotiating table on equal terms," he said.

One senior Iranian official said there was no alternative but to reach an agreement, and that it was possible, though the road ahead would be bumpy given Iran's distrust of Trump after he abandoned the 2015 deal.

Iran has staved off economic collapse largely thanks to China, the main buyer of its oil and one of the few nations still trading with Tehran despite sanctions.

Oil exports slumped after Trump ditched the nuclear deal but have recovered in the past few years, bringing in more than $50 billion in revenue in both 2022 and 2023 as Iran found ways to skirt sanctions, according to US Energy Information Administration estimates.

Yet uncertainty looms over the sustainability of the exports as Trump's maximum pressure policy aims to throttle Iran's crude sales with multiple rounds of sanctions on tankers and entities involved in the trade.

PUBLIC ANGER SIMMERS

Iran's rulers are also facing a string of other crises - energy and water shortages, a collapsing currency, military setbacks among regional allies and growing fears of an Israeli strike on its nuclear facilities - all intensified by Trump's tough stance.

The energy and water sectors are suffering from a lack of investment in infrastructure, overconsumption driven by subsidies, declining natural gas production and inefficient irrigation, all leading to power blackouts and water shortages.

The Iranian rial has shed more than 90% of its value against the dollar since the sanctions were reimposed in 2018, according to foreign exchange websites, officials and lawmakers.

Amid concerns about Trump's tough approach, Iranians seeking safe havens for their savings have been buying dollars, other hard currencies, gold or cryptocurrencies, suggesting further weakness for the rial, according to state media reports.

The price of rice has soared 200% since last year, state media has reported. Housing and utility costs have spiked sharply, climbing roughly 60% in some Tehran districts and other major cities in recent months, driven by the rial's steep fall and soaring raw material costs, according to media reports.

Official inflation hovers around 40%, though some Iranian experts say it is running at over 50%. The Statistical Center of Iran reported a significant rise in food prices, with over a third of essential commodities increasing by 40% in January to leave them more than double the same month the previous year.

In January, the Tasnim news agency quoted the head of Iran's Institute of Labor and Social Welfare, Ebrahim Sadeghifar, as saying 22% to 27% of Iranians were now below the poverty line.

Iran's Jomhuri-ye Eslami newspaper, meanwhile, said last week that poverty rates stood at around 50%.

"I can barely cover the rent for my carpet shop or pay my workers' salaries. No one has the money to buy carpets. If this continues, I will have to lay off my staff," Morteza, 39, said by phone from Tehran's Grand Bazaar, giving only his first name.

"How do they expect to solve the economic crisis if they refuse to talk to Trump? Just talk to him and reach a deal. You cannot afford pride on an empty stomach."

NUCLEAR RED LINE

Based on Iranian state media reports, there were at least 216 demonstrations across Iran in February, involving retirees, workers, healthcare professionals, students and merchants. The protests largely focused on economic hardships, including low wages and months of unpaid salaries, according to the reports.

While the protests were mostly small-scale, officials fear a deterioration in living standards could be explosive.

"The country is like a powder keg, and further economic strain could be the spark that sets it off," said one of the four officials, who is close to the government.

Iran's ruling elite is acutely aware of the risk of a resurgence of the unrest similar to the 2022-2023 protests over Mahsa Amini's death in custody, or the nationwide protests in 2019 over fuel price rises, the officials said.

The senior Iranian official said there had been several high-level meetings to discuss the possibility of new mass protests - and potential measures to head them off.

Nevertheless, despite the worries about potential unrest, Iranian officials said Tehran was only prepared to go so far in any talks with Trump, stressing that "excessive demands", such as dismantling Iran's peaceful nuclear program or its conventional missile capabilities, were off the table.

"Yes, there are concerns about more economic pressure, there are concerns about the nation's growing anger, but we cannot sacrifice our right to produce nuclear energy because Trump wants it," the senior official said.

Ali Vaez, Iran project director at the International Crisis Group, said Iran's rulers believed that negotiating with Trump under coercion would signal weakness, ultimately attracting more pressure than reducing it.

"That is why Khamenei seems to believe that the only thing that is more dangerous than suffering from sanctions is surrendering to them," he said.