Persistent security challenges centered on Hezbollah's military capabilities and rejection of the June 2026 U.S.-brokered trilateral framework agreement continue to block any path to full normalization. The framework outlines phased Israeli redeployments tied to Lebanese Armed Forces control and verified disarmament of non-state actors, alongside working groups for a potential comprehensive peace accord, yet Lebanese officials have clarified it represents a process to end hostilities rather than diplomatic recognition or a treaty. Ongoing cross-border incidents and Hezbollah statements through the summer have underscored implementation barriers, while Lebanon's internal political dynamics and historical positions on relations with Israel further constrain rapid progress. Traders assess these structural and timeline hurdles as making formal normalization before 2027 highly improbable.