Beirut's southern suburbs pounded as ceasefire hopes hang in balance

IN BRIEF

• Israeli airstrike flattens a building near one of Beirut's busiest traffic junctions as two strikes attributed to Israel hit Hezbollah bastion on Friday. READ MORE BELOW

• Hamas official says they are 'ready' for a Gaza ceasefire and urges Donald Trump to 'pressure' Israel.

• Israel's military issued a number of evacuation orders for the southern suburbs of Beirut.

• Senior Iranian official Ali Larijani and Lebanese Parliament Speaker Nabih Berri discuss efforts to reach a ceasefire in Lebanon, says Iran's embassy in Lebanon. READ MORE BELOW

• Israel's energy minister and member of security cabinet Eli Cohen says prospects for a ceasefire are the most promising since the conflict began.

• Lebanon's Hezbollah says it targeted "Tel Haim" military intelligence base in Israel's Tel Aviv with missiles on Thursday.

• IDF officer killed and another wounded during fighting in southern Lebanon, says Israel military.

• U.S. ambassador to Lebanon submitted a draft truce proposal to Lebanon's parliament speaker Nabih Berri on Thursday.

• Islamic Jihad released a new video excerpt of Israeli hostage Sacha Trupanov on Friday, two days after the release of a first video.

• Lebanon economic losses top $5 billion in year of clashes, according to the World Bank. READ MORE BELOW

• Israel's army releases 20 Palestinian prisoners who are taken to the European Hospital in Khan Younis for treatment.

• Several deadly artillery and air attacks in northern Gaza, according to Palestine's Wafa news agency.

IN DETAIL

Israel steps up airstrikes on Lebanon

An Israeli airstrike flattened a building near one of Beirut's busiest traffic junctions on Friday, shaking the Lebanese capital as Israel kept up its intensified bombardment of Hezbollah-controlled areas of the city.

Israel has increased its aerial bombardment this week on the southern suburbs - an escalation that has coincided with indications of movement in U.S.-led diplomatic contacts towards ending the conflict.

The U.S. ambassador to Lebanon on Thursday submitted a draft truce proposal to Lebanon's parliament speaker Nabih Berri, who is endorsed by Hezbollah to negotiate, according to reports in Lebanon. 

"It is a draft to get observations from the Lebanese side," a source in lebanon said. Asked about the proposal, a spokesperson for the U.S. Embassy in Beirut said: "Efforts to reach a diplomatic deal are ongoing."

Ahead of the latest airstrikes, the Israeli military issued a warning on social media identifying buildings in the southern suburbs and telling residents to evacuate, saying they were near Hezbollah facilities.

On Thursday, Eli Cohen, Israel's energy minister and a member of its security cabinet, said prospects for a ceasefire were the most promising since the conflict began.

Lebanon backed by Iran over truce

Iran has pledged its support to any decision taken by the Lebanese government and Lebanon's "resistance" in current talks on a ceasefire in the Israel-Hezbollah conflict.

This was the message from Ali Larijani, senior advisor to Supreme Leader Ali Khamenei, who met Berri and Lebanon's caretaker Prime Minister Najib Mikati in Beirut on Friday.

"We are not looking to sabotage anything. We are after a solution to the problems," Larijani said after the meeting.

Israel launched its offensive against Hezbollah after almost a year of cross-border hostilities ignited by the Gaza war, declaring it wanted to secure the return home of tens of thousands of people forced to evacuate from northern Israel.

It has dealt Hezbollah heavy blows, killing its leader Sayyed Hassan Nasrallah and other commanders, using airstrikes to pound areas of Lebanon where Hezbollah has political and military sway, and sending troops into the south.

One major sticking point in ceasefire talks is Israel's demand to retain freedom to act should Hezbollah violate any agreement - a demand Lebanon has rejected.

U.S. newspaper the Washington Post is reporting that Israeli Prime Minister Benjamin Netanyahu was rushing to advance a Lebanon ceasefire with the aim of delivering an early foreign policy win to President-elect Donald Trump, who is expected to be strongly pro-Israel.

Huge cost for Lebanon over war

The World Bank said the ongoing conflict between Israel and Hezbollah has caused $8.5 billion in damage and losses to Lebanon, with final figures expected to be significantly higher as the conflict continues.

Lebanon faces estimated economic losses of $5.1 billion over 12 months, driven primarily by heavy impacts on commerce, tourism, and agriculture.

Direct physical damage in Lebanon amounts to at least $3.4 billion, the Damage and Loss Assessment conducted by the World Bank said.

The analysis projects Lebanon's real GDP will contract by at least 5.7 percent in 2024 due to the conflict, compared to a 0.9 percent growth in a scenario without the conflict, a heavy toll for a country still reeling from the effects of a financial collapse five years ago.