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."



Hezbollah's Installment Payments for Shelter Reveal Depth of Financial Crisis

01 November 2024, Lebanon, Beirut: A picture of assassinated Hezbollah leader Hassan Nasrallah is displayed in front of rubble of flattened building caused by Israeli air raids on Beirut southern suburb. Photo: Marwan Naamani/ZUMA Press Wire/dpa
01 November 2024, Lebanon, Beirut: A picture of assassinated Hezbollah leader Hassan Nasrallah is displayed in front of rubble of flattened building caused by Israeli air raids on Beirut southern suburb. Photo: Marwan Naamani/ZUMA Press Wire/dpa
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Hezbollah's Installment Payments for Shelter Reveal Depth of Financial Crisis

01 November 2024, Lebanon, Beirut: A picture of assassinated Hezbollah leader Hassan Nasrallah is displayed in front of rubble of flattened building caused by Israeli air raids on Beirut southern suburb. Photo: Marwan Naamani/ZUMA Press Wire/dpa
01 November 2024, Lebanon, Beirut: A picture of assassinated Hezbollah leader Hassan Nasrallah is displayed in front of rubble of flattened building caused by Israeli air raids on Beirut southern suburb. Photo: Marwan Naamani/ZUMA Press Wire/dpa

A decision by Hezbollah Secretary-General Naim Qassem to limit housing support to a three-month window has thrown a spotlight on the group’s tightening finances, after it moved from yearlong lump-sum payments to staggered installments paid once every quarter.

Qassem said Hezbollah would disburse housing allowances for February, March, and April 2026 to “everyone whose home was destroyed or rendered uninhabitable.” The payment had originally been due in early December for three months.

Instead, the party paid allowances for the previous two months and has now approved another three-month tranche, despite a 10-day delay since the disbursement was announced.

Uneven payments, lingering questions

Housing allowances are seen not only as a political signal but also as a practical test of the group’s ability to cover rent, school transfers for children, transportation costs, and the reality of prolonged internal displacement turning into a forced way of life.

Rana, who fled a southern town to Beirut, said families’ priority was no longer politics but securing a place to live.

“People are asking about rent support, about the duration, about continuity. Three months go by quickly, and after that, no one knows what will happen,” she said.

Hassan, another affected resident living in Beirut’s southern suburbs, said the announcement “eased part of the anxiety,” but added that “the issue is not just the announcement, it is the regularity of payment and whether everyone is included.”

Disparities in payouts

Behind the anxiety lies what residents describe as selective disbursement. In the previous phase, not all beneficiaries received full housing allowances, residents of the southern suburbs said, noting disparities in case outcomes.

One resident said he had received only $2,000 for four months, adding that other payments from the previous year had not reached him in full and that he did not know their fate.

Another said he received $3,000 for six months, but that talk of additional allowances had continued without clarity on how they would be completed or whether they would be paid at all.

A woman from the Haret Hreik area said: “We don’t know whether what is being paid is a full housing allowance, partial installments, or a settlement. People are talking, but there is no clear official answer.”

‘Committed’ to housing support

Hezbollah says it has “decided to secure housing,” and sources familiar with the details said the step is aimed at easing the burden on those affected in the postwar phase, especially amid rising living costs and soaring rents.

But the pledge comes amid intensifying external pressure and sanctions aimed at curbing the flow of funds to the group.

The US Department of the Treasury recently announced it had taken “action to disrupt two key mechanisms Hezbollah uses to sustain its economic stability,” namely “revenue generation in coordination with the Iranian regime and the exploitation of Lebanon’s informal financial sector.”

Opponents of Hezbollah say the issue is no longer merely political but directly linked to the group’s ability to secure liquidity to meet social obligations, foremost among them housing allowances. The real test, they argue, will be in regular payments and clarity of mechanism, not in the announcement itself.

Temporary relief

Jad Al-Akhawi, head of the Lebanese Democratic Coalition, told Asharq Al-Awsat that talk of injecting funds resembled “a morphine shot.”

“In previous periods, it was said that large sums of money entered the country, but they were not disbursed. Today, there may be limited spending, but it remains within the framework of temporary calming, nothing more,” he said.

He added that the state had pledged around $300 million, arguing that Hezbollah’s move was “an attempt to give people a dose of calm, something like morphine, until actual funding becomes available.”

He ruled out a return to previous financing patterns, particularly through institutions such as Al-Qard Al-Hasan, saying that continuation of that approach would pose “serious risks to the economy.”


UN Agency Begins Clearing Huge Gaza City Waste Dump as Health Risks Mount

Palestinians walk near a landfill, in Gaza City, February 11, 2026. (Reuters)
Palestinians walk near a landfill, in Gaza City, February 11, 2026. (Reuters)
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UN Agency Begins Clearing Huge Gaza City Waste Dump as Health Risks Mount

Palestinians walk near a landfill, in Gaza City, February 11, 2026. (Reuters)
Palestinians walk near a landfill, in Gaza City, February 11, 2026. (Reuters)

The United Nations Development Program began clearing a huge wartime garbage dump on Wednesday that has swallowed one of Gaza City’s oldest commercial districts and is an environmental and health risk.

Alessandro Mrakic, head of the UNDP Gaza Office, said work had started to remove the solid-waste mound that has overtaken the once busy Fras Market in the Palestinian enclave's main city.

He put the volume of the dump at more than 300,000 cubic meters (390,000 cubic yards) and 13 meters (14 yards) high.

It formed after municipal crews were blocked from reaching Gaza’s main landfill in the Juhr al-Dik area - adjacent to the border with Israel - when the Gaza war began in October 2023.

The area in Juhr ‌al-Dik is now ‌under full Israeli control.

Over the next six months, UNDP plans ‌to ⁠transfer the waste to ⁠a new temporary site prepared in the Abu Jarad area south of Gaza City and built to meet environmental standards.

The site covers 75,000 square meters and will also accommodate daily collection, Mrakic said in a statement sent to Reuters. The project is funded by the Humanitarian Fund and the European Union's Civil Protection and Humanitarian Aid Operations.

Some Palestinians sifted through the garbage, looking for things to take away, but there was relief that the market space would eventually be cleared.

"It needs to be moved to a ⁠site with a complex of old waste, far away from people. There's ‌no other solution. What will this cause? It will cause ‌us gases, it will cause us diseases, it will cause us germs," elderly Gazan Abu Issa said ‌near the site.

The Gaza Municipality confirmed the start of the relocation effort in collaboration with the ‌UNDP, calling it an urgent step to contain a worsening solid-waste crisis after about 350,000 cubic meters of rubbish accumulated in the heart of the city.

'A SYMBOL OF THE WAR'

Fras Market, an historic quarter that before the war served nearly 600,000 residents with items ranging from food to clothes and household tools, has been ‌buried under garbage for more than a year.

Amjad al-Shawa, head of the Palestinian NGOs Network and a liaison with UN and international agencies, ⁠said the dump had fueled “serious ⁠health and environmental problems and the spread of insects and illnesses.”

“It is a symbol of the war that continued for two years,” he told Reuters. “Its removal may give people a sense of hope that the ceasefire (agreed last October) is moving forward.”

Shawa said the waste would be transported to a transitional site near the former Netzarim settlement in central Gaza until Israeli forces withdraw from eastern areas and municipal access to the permanent landfills can be restored.

UNDP said it had collected more than 570,000 tons of solid waste across Gaza since the war began as part of its emergency response to avert a further deterioration in public health conditions.

The number of temporary dumpsites has decreased from 141 to 56 as part of efforts in 2024-25 to remove smaller dumping sites, a UNDP report last December said.

"However, only 10 to 12 of these temporary dumping sites are accessible and operational, and Gaza’s two main sanitary landfills remain inaccessible. The environmental and public health risks remain critical," it added.


Israel Says Killed Hamas Operative Responsible for 2004 Bus Bombings

Destroyed buildings are pictured in the Jabalia camp for Palestinian refugees in the northern Gaza Strip on February 8, 2026. (AFP)
Destroyed buildings are pictured in the Jabalia camp for Palestinian refugees in the northern Gaza Strip on February 8, 2026. (AFP)
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Israel Says Killed Hamas Operative Responsible for 2004 Bus Bombings

Destroyed buildings are pictured in the Jabalia camp for Palestinian refugees in the northern Gaza Strip on February 8, 2026. (AFP)
Destroyed buildings are pictured in the Jabalia camp for Palestinian refugees in the northern Gaza Strip on February 8, 2026. (AFP)

The Israeli military said on Wednesday it killed a senior Hamas operative who had been convicted of orchestrating two bus bombings in 2004 that left 16 civilians dead and dozens more wounded.

The bombings were among the deadliest attacks during the second intifada, the Palestinian uprising of the early 2000s.

In a joint statement, the military and the Shin Bet domestic security agency said their forces killed Bassem Hashem Al-Haymouni in a strike in the Gaza Strip last week.

They described him as "a senior operative" for Hamas who "had been active since 2004" as part of a cell responsible for carrying out deadly attacks in Israel.

They identified him as the mastermind of an August 2004 attack in the southern Israeli city of Beer Sheva, in which suicide bombers blew up two buses.

He "dispatched several suicide bombers to carry out a coordinated attack on two buses in Beer Sheva, in which 16 Israeli civilians were murdered and approximately 100 others were injured", the statement said.

Haymouni was apprehended and sentenced, but was released in 2011 as part of the so-called "Shalit deal", in which Israel freed more than 1,000 Palestinian prisoners in exchange for the release of soldier Gilad Shalit.

Palestinian fighters had seized Shalit in 2006 during a cross-border raid near the Kerem Shalom crossing and held him hostage for five years.

His case became a major national issue in Israel.

The military and Shin Bet statement said that after Haymouni was released, he "resumed recruiting attackers and directing terrorist activity".

It added that the strike on Haymouni was also in response to violations of the ongoing ceasefire in Gaza.

"During the war he was involved in the production and placement of explosive devices intended to harm Israeli troops," it said, referring to the war in Gaza sparked by Hamas's October 7, 2023 attack on Israel.

The US-brokered Gaza ceasefire entered its second phase last month, and foresees a demilitarization of the territory -- including the disarmament of Hamas -- along with a gradual withdrawal of Israeli forces.

Hamas has said that disarmament is a red line, although it has indicated it could consider handing over its weapons to a future Palestinian governing authority.

A Palestinian technocratic committee has been set up with a goal of taking over day-to-day governance in the Strip, but it remains unclear whether, or how, it will address the issue of demilitarization.