Israel declares part of Lebanon a combat zone amid tensions with Hezbollah

## Market Snapshot

Israel x Hezbollah Permanent Peace Deal market is now priced at 3.3% YES, down from 8% 24 hours ago. Israel Withdraws from Lebanon by June 30, 2026, market shows 10.5% YES, slightly up from 10% 24 hours ago. The Israel x Lebanon Diplomatic Meeting market remains low with no recent updates.

## Key Takeaways

– The declaration appears to significantly reduce the likelihood of a permanent peace deal with Hezbollah by May 31, 2026. – Market pricing suggests a decreased probability of Israel’s withdrawal from Lebanon by the given deadlines. – The escalation could indicate fewer chances of diplomatic engagements between Israel and Lebanon in the near term.

## Article Body