In his currency exchange shop in Beirut, 86-year-old Farouk Khoury watches the news unfold as the conflict between Hezbollah and Israel intensifies, leaving his shop devoid of customers and uncertain about its future. The recent escalation in violence has significantly impacted businesses, with bombings and missile strikes becoming a common sight.

As tensions rise, the economic repercussions become more evident. Lebanon, already grappling with a series of crises over the past years, is now facing a dire situation. Tourists no longer visit local businesses like Perla Tatros’ cafe, leading to a decline in revenue amidst the ongoing conflict.

Lebanese economist Sami Nader highlights the compounding challenges faced by the country, from financial collapse to the devastating impact of the Beirut port explosion. With an all-out war looming, the Lebanese economy remains in peril.

As businesses adapt to the turbulent environment, the health sector sees an increase in demand for medicines, while the agriculture industry suffers from soil pollution and disrupted supply chains. The conflict’s toll on infrastructure, displacement of residents, and economic despair paint a grim picture for Lebanon’s future.

Despite the hardships, resilience is seen at different levels within the economy. While some struggle with fixed incomes and unemployment, others with outside resources weather the storm. However, with the tourism sector at a standstill and businesses facing closures, the economic outlook remains bleak.