South of Litani: A New Front Under Israel-Set Deterrence Limits

This picture shows the rubble of buildings destroyed in Israeli strikes in the southern Lebanese coastal city of Tyre on April 21, 2026. (AFP)
This picture shows the rubble of buildings destroyed in Israeli strikes in the southern Lebanese coastal city of Tyre on April 21, 2026. (AFP)
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South of Litani: A New Front Under Israel-Set Deterrence Limits

This picture shows the rubble of buildings destroyed in Israeli strikes in the southern Lebanese coastal city of Tyre on April 21, 2026. (AFP)
This picture shows the rubble of buildings destroyed in Israeli strikes in the southern Lebanese coastal city of Tyre on April 21, 2026. (AFP)

After Israel imposed a new reality on the ground following a ceasefire, a new deterrence equation has emerged, confining hostilities to the area south of the Litani River.

Israeli forces continue operations in zones under their control, while Hezbollah has limited its attacks to that area, with restrained responses to ceasefire violations inside northern Israel.

With direct talks between Lebanon and Israel expected to begin, with Israeli withdrawal a central issue, this equation came into focus on Tuesday.

Hezbollah said it responded to what it called “blatant and documented violations by the Israeli army, exceeding 200 breaches since the ceasefire took effect, including targeting civilians and destroying villages and homes in southern Lebanon.”

It said it targeted an artillery position in the settlement of Kfar Giladi, which it described as the source of recent shelling toward Yohmor al-Shaqif, using a barrage of rockets and drones.

On Wednesday, Hezbollah said it again targeted an Israeli artillery position in Bayyada with a drone, “in response to Israeli ceasefire violations and continued shelling of villages in southern Lebanon.”

The Israeli military said Hezbollah launched a drone toward its troops on the front line in southern Lebanon, adding the air force intercepted it before it crossed into Israel, calling it a breach of the ceasefire.

Limited operations to avoid escalation

Riad Kahwaji, a security and defense analyst, told Asharq Al-Awsat that Hezbollah is trying to impose new rules of engagement but lacks the military capability to do so. He said the group knows any escalation beyond the current framework would trigger a broad Israeli response.

He explained that Hezbollah is operating within a calculated margin, carrying out limited strikes inside what is known as the “engagement zone” or “yellow zone” set by Israel, in an attempt to shape a new equation without sliding into full-scale war.

Kahwaji said rules of engagement are dictated by the balance of power, not intent, adding that Israel retains the ability to define the scope and ceiling of operations. He pointed to the expansion of Israeli activity to areas south of the Zahrani River, not just south of the Litani, highlighting a wide gap in military capabilities, from precision to firepower and reach, giving Israel operational superiority.

Kahwaji said Hezbollah’s operations reflect that reality, remaining limited and largely symbolic. He said they often target open areas, claiming to hit military targets without clear evidence, in an effort to preserve deterrence rather than shift the balance.

Hezbollah understands Israel’s ability to inflict wide destruction on border villages and that it cannot currently protect or retake them if the conflict expands. As a result, its role is confined to acting as “a support front for Iran,” launching rockets within calculated limits while preserving its military capacity ahead of any renewed war involving Iran, he added.

Captive Hezbollah fighter

Israeli ceasefire violations continued on Wednesday. One person was killed, and two were wounded in a drone strike on the outskirts of the Jbour area in western Bekaa.

The town of Tayri was later shelled in an area where journalists and civilians were present, the National News Agency said, adding that two people were killed and journalists were wounded.

The agency said Israeli forces surrounded journalists Amal Khalil and Zeinab Faraj and prevented the Red Cross and the Lebanese army from reaching them for some time, triggering an alert in Lebanon. Information Minister Paul Morcos said he was following up with UNIFIL and the Lebanese army and held Israel responsible for their safety.

Separately, Lebanese Civil Defense personnel in Rmeish treated a wounded Hezbollah fighter who had crawled to Ain Ebel from Bint Jbeil, before contacting the Lebanese Red Cross to evacuate him. Israeli forces in Debel called the rescuers, demanding he be handed over and threatening to target the ambulance, the agency said.

The rescuers refused. The wounded man then chose to walk toward Debel to surrender, to protect the medics and residents, despite heavy blood loss.

Systematic demolitions

Israeli operations south of the Litani have intensified, with systematic demolitions in residential neighborhoods in Bint Jbeil and the towns of Beit Lif, Shema, Tayr Harfa and Hanine.

Roads in Wadi al-Slouqi have been bulldozed using heavy machinery backed by military vehicles. Homes and property in Aita al-Shaab were also destroyed, including remaining shops along the main road.

In Khiam, near-continuous explosions have targeted homes, buildings and mosques, alongside demolition and bulldozing of infrastructure, in what appears to be an attempt to erase the town. Israeli forces also blew up several homes at dawn in Bayyada, with explosions heard across Tyre.

Israeli army spokesperson Ella Waweya said the military carried out an airstrike to “eliminate an immediate threat” after detecting two individuals who she said breached the front defensive line in Wadi al-Slouqi.

She added that forces are continuing operations south of that line to prevent threats to northern communities.



Disputes Over Quotas Stall Iraq Government Talks

A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
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Disputes Over Quotas Stall Iraq Government Talks

A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)

Rivalries within Iraq’s Shiite Coordination Framework have led to a political deadlock over naming a new prime minister, as internal disagreements persist over both the selection mechanism and the division of ministerial posts among the bloc’s factions.

According to sources, a meeting of Coordination Framework leaders - postponed several times in recent days - will focus on finding a solution that reconciles two approaches: one based on the “electoral weight” of member blocs, and the other on “political consensus” to choose a compromise candidate acceptable to all parties.

The bloc has failed to agree on a nominee during two previous meetings after votes between two leading candidates ended in a tie, deepening divisions and delaying a decision. The upcoming session is seen as potentially decisive, though another postponement remains possible if differences persist.

An Iraqi political source said a decision on the prime minister could come within hours as the constitutional deadline approaches.

“I expect the matter to be settled one way or another, because next Saturday marks the final deadline, and continued delay is already having a negative impact even among their own base,” the source said.

The source added that if the alliance adopts the criterion of electoral weight, Ihsan al-Awadi, the candidate backed by Prime Minister Mohammed Shia al-Sudani, would have the strongest chances. However, if the decision remains confined to the bloc’s leadership, the contest would stay within a pool of 12 votes, with the balance possibly tipping in favor of Bassem al-Badri.

The dispute extends beyond the selection mechanism to include internal bargaining over the distribution of ministries and sovereign portfolios. Some factions have tied their support for any candidate to the size of their share in the next government, further complicating negotiations.

Two prominent candidates have emerged with nearly equal backing within the Coordination Framework, resulting in a deadlock and reviving the option of a compromise candidate if neither consensus nor a majority decision can be reached.

The Coordination Framework, formed after the most recent elections, includes several major Shiite forces, among them alliances led by former prime ministers Nouri al-Maliki and Haider al-Abadi, as well as the bloc of current Prime Minister Mohammed Shia al-Sudani, who is heading a caretaker government. Political pressure is mounting as the constitutional deadline nears for the president to designate a new prime minister.

The election of President Nizar Amidi has triggered the formal government formation process, with a constitutional deadline set to expire on April 26, placing political forces under pressure to avoid a return to prolonged deadlock.

With complications persisting, there are many scenarios, including a last-minute agreement, further delay, or a shift toward a compromise candidate. The standoff underscores fragile cohesion within the Shiite camp and a widening gap between electoral calculations and the demands of political consensus.


Fallout from Iran War Casts Shadow over Egypt’s New Budget

Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
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Fallout from Iran War Casts Shadow over Egypt’s New Budget

Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)

The economic fallout from the Iran war has cast a shadow over Egypt’s new state budget, Finance Minister Ahmed Kouchouk told parliament on Wednesday, as he presented the draft before it was referred to specialized committees for discussion, with the government pledging swift amendments “to enhance its ability to deal with current and potential risks.”

Kouchouk’s statement came a day after Prime Minister Mostafa Madbouly addressed the House of Representatives, focusing on the damage caused by the conflict and ways to manage its repercussions.

He said the government was treating the current regional escalation as a “prolonged crisis,” whose end is difficult to predict given the complexity and overlap of regional and international dynamics, and suggested its economic effects could last through the end of the year.

During the presentation of the 2026-2027 fiscal year budget, 600 billion Egyptian pounds ($11.5 billion) were allocated for energy subsidies, including electricity support, which rose by 39%, according to the finance minister.

A total of 832.3 billion pounds was earmarked for social protection - a 12% annual increase - to support the most vulnerable groups, alongside 90 billion pounds set aside for programs to support economic activity. (The dollar is equivalent to about 52 Egyptian pounds.)

The minister said spending priorities focus on healthcare, education, social protection, and support for production and exports, alongside flexible precautionary policies to address potential challenges and strike a balance between fiscal discipline and economic stimulus. He pointed to “uncertainty in markets and disruptions in trade and supply chains,” describing them as “major challenges and pressures on economies, especially emerging markets.”

Data presented to lawmakers also indicated a 3% reduction in fuel consumption and a 15% cut in electricity and lighting use in response to recent developments. Regarding national projects, the government decided to postpone or slow the implementation of “slow-moving” or fuel-intensive projects on an exceptional basis for three months, renewable if needed.

According to the minister, the government has also decided to limit spending in the final quarter of the current fiscal year to essential expenditures only, including wages, salaries, pensions, and the needs of the health, electricity and petroleum sectors.

Egypt’s budget has been affected by rising costs of securing energy supplies, prompting the government to increase subsidy allocations in the new budget while relying on consumption rationalization and hedging against future developments in the conflict, said economist Mohieddin Abdel Salam. He noted that Egypt has been significantly impacted by rising oil and gas prices.

Figures presented by the finance minister showed the government has mobilized about 135.6 billion pounds since early March to ensure the stability of vital sectors. This includes 90.6 billion pounds for the energy sector, 30 billion pounds to secure essential commodities, subsidized goods, wheat and sugar, and 15 billion pounds to support the healthcare sector and provide medicines.

Abdel Salam told Asharq Al-Awsat that uncertainty remains over Egypt’s ability to attract foreign investment, as some investors are wary of committing funds in the region due to war-related risks. However, he said Egypt could still benefit from opportunities if it manages to distance itself from ongoing tensions.

He noted that these conditions have led to tighter fiscal policies, reflected in holding interest rates steady rather than cutting them, as well as austerity measures and reduced spending by government institutions.

This can be seen in the new budget, he added, which focuses on vital sectors and strengthening social support, particularly amid declining revenues from the Suez Canal and tourism, and potential impacts on remittances from Egyptians abroad.


French Delegation in Algeria to Mend Ties, Rebuild Trust

Chairman of the Algerian Economic Renewal Council, center
Chairman of the Algerian Economic Renewal Council, center
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French Delegation in Algeria to Mend Ties, Rebuild Trust

Chairman of the Algerian Economic Renewal Council, center
Chairman of the Algerian Economic Renewal Council, center

A delegation from the Mouvement des Entreprises de France (Medef) is set to visit Algeria on Thursday, with its president Patrick Martin leading around 40 senior company executives, in an economic push aimed at repairing trade relations strained by political tensions over the past two years.

According to sources within the French diplomatic network based in Algeria, the mission seeks to inject new momentum into direct economic dialogue between the two sides and to restore the position of French companies in the Algerian market.

The visit is also seen as a practical step toward rebuilding trust between economic stakeholders, with the goal of moving past a period of stagnation and reviving trade and investment flows.

Reports cited by Algerian daily El Watan on Wednesday, quoting sources close to the Algerian Economic Renewal Council - the country’s largest employer body - said Medef’s visit will last two days.

The trip comes after a prolonged period of tension in bilateral relations that has affected economic exchanges. Observers say the move is not merely a protocol visit but an attempt to relaunch dialogue between business communities on both sides.

The main objective is to resume talks within the framework of the Algeria-France Economic Relations and Friendship Council, chaired by businessman Kamel Moula, who also heads the Algerian Economic Renewal Council, at a time when French economic presence in Algeria has significantly declined in recent years.

Sources from the Algerian Economic Renewal Council told Asharq Al-Awsat that the planned meetings in Algiers will be limited to bilateral sessions focusing on priority sectors, notably food security and energy - through projects linked to solar power and green hydrogen - as well as healthcare, digitalization and construction.

The mission offers French companies an opportunity to reaffirm their presence and reassure partners of their long-term commitment, the same sources said. It also aims to address certain obstacles, including lengthy administrative procedures, which are estimated to have tripled since 2024.

Observers consider the visit a key test of prospects for reviving economic relations between the two countries.

The Medef visit comes amid signs of a gradual political thaw in relations between Algiers and Paris. A visit by French Interior Minister Laurent Nunez to Algeria in February, during which he was received by President Abdelmadjid Tebboune at the presidential palace, helped pave the way for a measured easing of tensions.

In recent media comments, Michel Bisac, head of the Algerian-French Chamber of Commerce and Industry, warned of the potential fallout from the political crisis between Algeria and France, fueled by political and media circles close to the far right. The crisis erupted in summer 2024 after Paris recognized Moroccan sovereignty over Western Sahara.

“We are in a very delicate situation,” Bisac said, expressing regret over threats “not only to political ties but also economic relations between the two countries.”

He added that if Algeria were to apply to France the same trade measures it previously imposed on Spain after Madrid backed Morocco’s autonomy plan for Western Sahara in 2022, “the bill would be costly for the French economy, with losses approaching 4.8 billion euros.”

That figure reflects the value of French exports to Algeria, a key pillar for several industrial sectors’ foreign trade. Bisac noted that around 6,000 French companies currently operate “for and with Algeria,” supplying goods and services or engaging in industrial partnerships.

“These companies would face serious difficulties if the situation worsens,” he warned, stressing the growing fragility of bilateral economic exchanges. “Until recently, I had great hope ... but today I want to clearly stress the need to avoid escalation.”