Lebanon's economy struggles under renewed war and global fuel crisis

A barber in Furn el-Shebbak reports fewer customers as renewed fighting between Israel and Hezbollah coincides with Lebanon’s continuing financial crisis. Rising prices are linked to supply problems, especially reduced oil shipments from the Gulf after blockades affecting the Strait of Hormuz. Higher fuel costs increase the expense of running generators and raise prices for groceries and business inputs. Lebanon previously recorded modest GDP growth, but renewed war and global effects from conflict involving Iran have undermined that outlook. Inflation reached an 18-month high, and a major bank projects zero GDP growth in 2026 if fighting continues. Despite economic pressure, the barber keeps prices unchanged to keep customers comfortable.

"Prices are rising as a result of supply issues particularly of oil from the Gulf region, which has largely stopped since the US and Iran blockaded the Strait of Hormuz. And, in Lebanon, which had already been suffering from an economic crisis, there is less work, and people are losing their jobs. The price of running the generator is killing me, he said. Everything has gotten more expensive, the price of petrol doubled, the supermarket is more expensive, even the products [I use for my business] got more expensive."

"Lebanon's government had been positive about the country's economy last year, with the World Bank recording a modest 3.5 percent GDP growth in 2025. But with the country back in the throes of war and the global impact from the war on Iran, that growth appears to have been eradicated. In March, inflation reached an 18-month high in Lebanon. Lebanon's Bank Audi now predicts that there will be 0 percent GDP growth in 2026 if the war continues."

"But, despite the hits, Mario said he that he refuses to raise his prices. I always prefer that the person who comes here is comfortable, he said. A lot of things are more expensive, but I prefer to be conservative on this. I feel like if you come to me, you want to be happy and relaxed."

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