Penny Pinching and Power Cuts; Lebanon’s Middle Class Squeezed by Crisis

Unlit buildings are seen during a partial blackout in Beirut, Lebanon August 11, 2021. (Reuters)
Unlit buildings are seen during a partial blackout in Beirut, Lebanon August 11, 2021. (Reuters)
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Penny Pinching and Power Cuts; Lebanon’s Middle Class Squeezed by Crisis

Unlit buildings are seen during a partial blackout in Beirut, Lebanon August 11, 2021. (Reuters)
Unlit buildings are seen during a partial blackout in Beirut, Lebanon August 11, 2021. (Reuters)

Lebanese school teacher Sara Wissam and her husband were comfortably off before a run on the local currency decimated the value of their salaries and dragged them towards poverty.

The plight of the Beirut couple is common across Lebanon's middle class, which has been forced to make once unthinkable choices by the worsening economic crisis: cutting back on food, cancelling trips or applying to emigrate for good.

"It used to be that our income lasted a month," the mother of three told Reuters.

"Now it's not enough for one trip to the supermarket to buy essentials," said Wissam, describing how she rarely buys meat, has cut back on cheese and chooses even the smallest treats for her young kids carefully.

Ayman Hadad, a 28-year-old university graduate who found a job in a shop, earns the equivalent of $125 a month and wants to join friends who have emigrated. He has applied to go to Canada. "Enough of Lebanon. We lost hope," he said.

Lebanon's descent into financial ruin began in 2019, the result of a poorly managed spending binge that pushed up debt, political paralysis as rival factions squabbled and foreign lenders' reluctance to bail the country out unless it reformed.

The World Bank ranks the crisis as among the most severe globally since the mid-19th century, devastating a country once seen as a wealthy and liberal outpost in the Middle East before civil war broke out from 1975 to 1990.

About 80% of the population of 6.5 million are considered poor; in September, more than half of families had at least one child who skipped a meal, UNICEF said, compared with just over a third in April.

The currency has lost more than 90% of its value and banks have locked savers out of accounts. By some estimates, state debt reached 495% of gross domestic product in 2021, far above levels that crippled some European states a decade ago.

Adding to people's frustration is the government's failure so far to tackle the problems.

Caretaker administrations have led Lebanon for much of the last three years, and since the cabinet quit after a devastating Beirut port blast in 2020, politicians have been fighting over who should lead an investigation into who was to blame.

Meanwhile people see signs of social and economic collapse. The state telecom firm shut the Internet in parts of Beirut for lack of fuel in recent days and an armed man took hostages at a bank demanding access to his trapped savings.

'Fridge empty'

Lebanon's national power grid was creaking before the crisis, with rolling cuts across the country. Now, a bankrupt government can barely run its power plants and homes often receive only an hour of state electricity a day.

Yola al-Musan, who manages a supermarket in Beirut, uses electricity from a shared neighborhood generator to keep the lights on at home.

When the national grid does fire up, Musan races to switch on the washing machine as only then does she have a strong enough current.

For school teacher Wissam, putting enough food on the table for her family has become tough, even though she and her husband both have steady jobs.

Before the crisis, Wissam and her husband's combined salary was 3 million Lebanese pounds a month, which at the exchange rate at the time of 1,500 to the dollar was around $2,000.

Now their combined earnings are worth the equivalent of $140, even after Wissam's modest wage hike. The currency has plummeted to 25,000 to the dollar, sending the price of imported goods and local products soaring.

"Lebanon's leaders amuse themselves insulting each other and accusing each other of corruption. In fact, they are all corrupt and thieves," she said, echoing widespread public and international criticism of how the crisis has been handled.

Politicians, some former militia leaders and others from families who wielded influence for generations over the nation's Christian and Muslim communities, acknowledge corruption exists but deny they are responsible and say they are doing their best to rescue the economy.

But a lengthy and continuing dispute over who should preside over the port blast inquiry has contributed to delays in talks with the International Monetary Fund, seen as vital to unlocking overseas support led by France.

Gulf donors stepped back years ago, voicing anger at Iran's rising influence in Lebanon through Hezbollah.

Najib Mikati, the billionaire prime minister, has tried to mend Gulf ties. Hezbollah, in turn, stepped up criticism of Gulf states and hosted conferences for domestic opponents of the monarchies.

Meanwhile, the cabinet is expected to hold its first meeting in more than three months on Monday to discuss a draft budget it hopes will ease financial pressures and quell public anger.

"If each one of them donated a small amount of their wealth to the poor, there would be no poor in Lebanon," said Shadi Ali Hamoud, 39, after returning home to his family from work in a restaurant kitchen. "Look at the fridge, it's empty."



Israeli Evacuation Orders Affect 14% of Lebanon, NGO Says

Emergency personnel at the scene after an Israeli airstrike had targeted a neighborhood in the town of Mieh Mieh near Sidon, southern Lebanon, 13 March 2026. (EPA)
Emergency personnel at the scene after an Israeli airstrike had targeted a neighborhood in the town of Mieh Mieh near Sidon, southern Lebanon, 13 March 2026. (EPA)
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Israeli Evacuation Orders Affect 14% of Lebanon, NGO Says

Emergency personnel at the scene after an Israeli airstrike had targeted a neighborhood in the town of Mieh Mieh near Sidon, southern Lebanon, 13 March 2026. (EPA)
Emergency personnel at the scene after an Israeli airstrike had targeted a neighborhood in the town of Mieh Mieh near Sidon, southern Lebanon, 13 March 2026. (EPA)

Over an eighth of Lebanon's territory is under Israeli orders for people to leave their homes, an aid group said on Friday, while the United Nations peacekeeping mission said Israeli ground troops were making incursions and erecting roadblocks.

Israel has been carrying out daily strikes on Lebanon since March 2 when the Iran-backed group Hezbollah launched rockets at Israel to avenge the killing of Iran's supreme leader in Tehran on the first ‌day of ‌the US-Israeli war with Iran.

Almost 700 people ‌in ⁠Lebanon have died ⁠in Israeli attacks and over 800,000 have been displaced. Israel's military says it has targeted Hezbollah militants and Iranian forces.

The Norwegian Refugee Council said Israel's evacuation orders for southern Lebanon and parts of Beirut now covered about 1,470 square kilometers or about 14% of the country.

"Israel’s mass evacuation orders have expanded to broad geographic directives, often ⁠demanding immediate movement, creating panic and fear across communities ‌that strikes are imminent – even when ‌they are not," said Maureen Philippon, NRC Country Director in Lebanon.

UN human rights ‌chief Volker Turk has said the blanket Israeli evacuation orders ‌raise serious international law concerns.

NRC's office in Tyre, south Lebanon, was badly damaged, it said, with no injuries. The Israeli military has carried out several strikes on Tyre since March 2, including a Tuesday strike on what ‌it described as a Hezbollah command center in the area.

The International Organization for Migration's Mathieu Luciano told a ⁠Geneva press ⁠briefing that around 600 shelters had been set up across the country, with many of them almost full. Hospitals are increasingly overstretched due to surging trauma cases, a World Health Organization official added.

The UN Interim Force in Lebanon told the same briefing its operations had been limited by the ongoing hostilities which injured two soldiers a week ago. Still, its troops had observed Israeli troop incursions, saying they had travelled up to 7 kilometers inside Lebanon and erected roadblocks restricting access.

“We are deeply concerned that the situation will deteriorate further," UNIFIL spokesperson Kandice Ardiel said by video link from Lebanon.


4 US Service Members Killed in Plane Crash Over Iraq

(FILES) A US Air Force Boeing KC-135 Stratotanker aerial-refuelling aircraft flies over Tel Aviv on March 4, 2026. (Photo by JACK GUEZ / AFP)
(FILES) A US Air Force Boeing KC-135 Stratotanker aerial-refuelling aircraft flies over Tel Aviv on March 4, 2026. (Photo by JACK GUEZ / AFP)
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4 US Service Members Killed in Plane Crash Over Iraq

(FILES) A US Air Force Boeing KC-135 Stratotanker aerial-refuelling aircraft flies over Tel Aviv on March 4, 2026. (Photo by JACK GUEZ / AFP)
(FILES) A US Air Force Boeing KC-135 Stratotanker aerial-refuelling aircraft flies over Tel Aviv on March 4, 2026. (Photo by JACK GUEZ / AFP)

Four of the six crew members aboard a US military aircraft that crashed in western Iraq are confirmed to have been killed, the US military said on Friday, ⁠as rescue efforts ⁠continued for the remaining two.

A US military refueling aircraft crashed in western ⁠Iraq on Thursday, in an incident the military said involved another aircraft but was not the result of hostile or friendly fire.

"The circumstances of the incident are ⁠under ⁠investigation. However, the loss of the aircraft was not due to hostile fire or friendly fire," a statement from US Central Command said.

The plane was taking part in the operation against Iran.

Both President Donald Trump and Defense Secretary Pete Hegseth have warned that the Iran war would likely claim more American lives before it ends.


Iran War Raises Concerns Over Impact on Suez Canal Traffic

A ship transits the Suez Canal last month (Suez Canal Authority). 
A ship transits the Suez Canal last month (Suez Canal Authority). 
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Iran War Raises Concerns Over Impact on Suez Canal Traffic

A ship transits the Suez Canal last month (Suez Canal Authority). 
A ship transits the Suez Canal last month (Suez Canal Authority). 

The Iran war has sparked growing concern in Egypt over its potential impact on navigation through the Suez Canal, one of the country’s most important sources of national income. Experts say the conflict has already begun affecting traffic through the strategic waterway as security risks for ships increase.

Recent reports indicate that several major global shipping companies—including Denmark’s Maersk, France’s CMA CGM, and Germany’s Hapag-Lloyd—have suspended the transit of some vessels through the canal.

The head of the Suez Canal Authority, Admiral Osama Rabie, expressed hope that regional stability would return soon, warning that escalating tensions could have serious repercussions for maritime transport and global supply chains.

In a statement issued Thursday, Rabie said the authority has moved to upgrade its maritime and navigational services and introduce new activities designed to meet customer needs in both normal and emergency circumstances. These include ship maintenance and repair services, maritime rescue operations and marine ambulance services, alongside continued modernization of the authority’s fleet of marine units.

Early impact on canal traffic

International transport expert Osama Aqil said the war’s effect on the canal had been evident since the first days of the conflict.

“Current indicators show that canal traffic has declined by about 50 percent since the war began,” Aqil told Asharq Al-Awsat. He attributed the drop to rising security risks and higher insurance premiums imposed on vessels passing through the region.

Aqil warned that the impact could deepen if the conflict drags on. Even after hostilities end, he said, it may take considerable time for shipping traffic to return to normal.

“International shipping groups that divert their vessels to the Cape of Good Hope route will likely sign contracts for the alternative passage,” he said. “Ending those arrangements and redirecting ships back through the canal will take time.”

Before the latest tensions, the Suez Canal had been showing signs of recovery following an earlier setback caused by Houthi attacks on commercial vessels in the Red Sea linked to the war in Gaza.

In January, the Suez Canal Authority said navigation statistics showed a “noticeable improvement” during the first half of the 2025–2026 fiscal year. Rabie said at the time that indicators pointed to improving revenues as some shipping lines resumed using the canal after conditions stabilized in the Red Sea.

Wider threat to global trade

Egyptian President Abdel Fattah el-Sisi has also warned about the impact of regional tensions on shipping in the Red Sea. During a meeting in Cairo earlier this month with Ajay Banga, president of the World Bank Group, Sisi said Egypt had lost roughly $10 billion in Suez Canal revenues due to the Gaza war, according to the Egyptian presidency.

Aqil said the Iran war could affect not only the canal but global trade more broadly, which he said has already shown signs of slowing.

“If the conflict continues, transport costs will rise, which will push up prices for many goods and commodities,” he stated.

Suez Canal revenues dropped sharply in 2024, falling 61 percent to $3.9 billion, compared with about $10.2 billion in 2023.

Security risk management expert Major General Ihab Youssef noted that the continuation of the war poses a threat to global navigation, not only to the Suez Canal.

Egypt secures ships along the canal and up to the limits of its territorial waters, he remarked. However, vessels traveling to and from the waterway must still pass through areas affected by military operations in the Gulf region and the Bab el-Mandeb Strait, prompting many shipping companies to reroute vessels around the Cape of Good Hope.

“Any closure of the Strait of Hormuz would further increase the risks of transit, particularly if the war is prolonged,” Youssef said.