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Washington Plans Economic Zone in South Lebanon to Prevent Hezbollah’s Reconstruction

August 23, 2025
in Sunna Files Observatory
Reading Time: 6 mins read
0

The U.S.-based news outlet Axios has revealed that the United States is planning to establish an “economic zone” in parts of South Lebanon, near the border with the Israeli occupation. The move, according to the report, is tied to American pressure on Israel to scale back its strikes on Lebanon.

Sources cited by Axios said that the administration of President Donald Trump asked Israel to withdraw from certain military positions in South Lebanon and significantly reduce airstrikes for several weeks as a first step to demonstrate willingness to cooperate with Lebanese initiatives.

The American plan reportedly involves a temporary halt to non-essential strikes, which could be extended if the Lebanese army takes further measures to prevent Hezbollah from rebuilding its capabilities in the south. A central component of the proposal is the creation of a so-called “Trump Economic Zone” in southern Lebanon, near the border with the occupation, with Saudi Arabia and Qatar agreeing to invest in reconstruction projects in these areas.


Israeli Occupation and U.S. Pressure

Israel continues to occupy parts of southern Lebanon, maintaining a presence in five military outposts. Israeli officials insist they will remain there “as long as Hezbollah poses a threat.”

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However, the Trump administration has asked Israel to consider withdrawing from at least one advanced post and to drastically limit air raids for several weeks as a gesture of cooperation with Lebanon’s government.

According to the same sources, U.S. envoy Tom Barrack also proposed a gradual Israeli withdrawal from the five sites, in exchange for “practical steps” from the Lebanese government aimed at disarming Hezbollah.


The “Trump Economic Zone”

The plan envisions creating an economic area in southern Lebanon with direct Gulf backing. Both Saudi Arabia and Qatar have already signaled willingness to finance reconstruction once Israel withdraws.

Washington claims the purpose is to make it harder for Hezbollah to re-establish its military presence near the border. In U.S. and Israeli discourse, this would “address Israel’s security concerns without the need for direct occupation.”

One source told Axios that some progress has been made, though no final decisions have been taken:

“The Israelis haven’t rejected the idea. They’re willing to give it a chance. They understand what the Lebanese government has done is historic, and they need to reciprocate.”


Lebanese Pressure and Hezbollah’s Response

Two weeks ago, the Lebanese Cabinet ordered the army to prepare a plan to disarm all non-state armed groups, effectively seeking to strip Hezbollah of its military power. This decision was made under direct U.S. pressure, with Washington demanding Hezbollah’s disarmament by the end of 2025.

Unsurprisingly, Hezbollah firmly rejected the decision, warning that:

“There will be no life in Lebanon if the government attempts to enforce it.”


Analysis: An Attempt to Undermine the Resistance

The American project reflects a familiar strategy: using “economic reconstruction” as a carrot for disarmament. By tying investment in South Lebanon to the dismantling of Hezbollah, Washington and its regional allies seek to reshape Lebanon’s south into a buffer zone that serves Israeli security interests.

But for many in Lebanon and across the region, such proposals represent another form of political occupation: replacing military control with economic dependency, while stripping the people of their right to resist.

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