Israel and Lebanon have agreed to a new ceasefire deal, which was reached after a fourth round of U.S.-mediated talks in Washington. The new ceasefire is contingent on the ‘evacuation of all Hezbollah operatives’ from an area between the Israeli border and the Litani river, about nineteen miles to the north, which is currently occupied by Israeli ground forces.

A spokesman for Hezbollah said the group has rejected the new ceasefire agreement, calling it ‘humiliating’ for Lebanon and the Lebanese people. The U.S. and Israel said the new deal is contingent on a cessation of hostilities by Hezbollah.

The importance of the ceasefire could extend beyond Israel and Lebanon. The conflict between Israel and Hezbollah is closely connected to the war between the U.S. and Iran, because Iran supports Hezbollah politically, financially, and militarily. The ceasefire could also ease the humanitarian impact of the conflict. Fighting has caused significant casualties, destruction of infrastructure, and displacement of civilians on both sides of the border.

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Under the terms of the ceasefire, there would be several areas throughout southern Lebanon where Hezbollah would be banned. If implemented, that would be a first since the militant group was created in 1983. The Lebanese Armed Forces would assume exclusive security control in those designated zones, with the aim of removing Hezbollah and other non-state armed groups from those areas. Israel, Lebanon, and the United States jointly endorsed this framework and agreed to continue negotiations later in June in hopes of reaching a broader and more comprehensive agreement.

Hezbollah claims that the majority of the Lebanese people do not support the new ceasefire, but that is likely untrue. Recent polls indicate a majority of Lebanese not only want the fighting with Israel to stop, but they also do not want Hezbollah in control of their country. The loss of prestige by Hezbollah in Lebanon could be attributed to a phenomenon noted by the late scholar Fouad Ajami, who said that in the Middle East ‘people tend to back the stronger horse.’

The clear demonstration of American and Israeli military superiority over Iran and Hezbollah has made the militant group look weak, and the devastation inflicted on southern Lebanon is blamed more on Hezbollah than Israel by the Lebanese people. Taken together, Hezbollah is at one of the group’s lowest points since it was created. That doesn’t mean Hezbollah isn’t dangerous or that the group is finished, but if the exclusion zones work, it is probable other areas of Lebanon will follow suit, and the group could eventually be squeezed out of Lebanon altogether.

The new ceasefire is more of an opportunity than a final peace settlement. If it succeeds, it could reduce regional tensions, strengthen the authority of the Lebanese government in southern Lebanon, and create momentum for broader diplomatic progress. If it fails, the region could once again face escalating violence with consequences that extend beyond Israel and Lebanon.

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The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.