Lebanon–Israel Pilot Zones: Lebanese and Israeli delegations met in Rome and agreed on more details for a “pilot zone” process in southern Lebanon, but no start date was set; the plan envisages Israeli withdrawal from small areas followed by Lebanese army deployment to assert sovereignty over Hezbollah. Southern Lebanon Returns to Ruins: A fragile ceasefire has enabled some displaced families to return to the border region, yet many find destroyed homes and damaged infrastructure, with hundreds of thousands still unable to go back. Iraq Targets Hezbollah Financing: Iraq expanded banking sanctions tied to Hezbollah and ISIS financing networks, signaling tighter enforcement as Baghdad seeks closer security and economic coordination with Washington. Syria–Lebanon Trade Push: Syria and Lebanon signed a memorandum between their chambers of commerce to boost trade and industrial cooperation, with a joint roundtable aimed at reviving investment links. Energy Connectivity: Cyprus and Lebanon, with World Bank support, agreed to a feasibility study for connecting their electricity grids to strengthen regional energy security. US–Middle East Pressure on Markets: Moody’s cut its 2026 growth forecast for Israel, citing fragile ceasefires and renewed conflict risks; meanwhile airlines suspended some Middle East routes amid US–Iran tensions. Global Finance Compliance: FATF updated its high-risk and monitored jurisdictions list, adding Bosnia and Herzegovina and Iraq while removing Algeria and Namibia.