Netanyahu Confirms Joint Plan with Trump to Disarm Hezbollah

Benjamin Netanyahu confirmed on Tuesday that Israel and the United States remain aligned on forcing Hezbollah to surrender its weapons, attempting to play down a public disagreement with President Donald Trump over the pace of military action against the Lebanese militant group.

Diplomatic Friction Surfaces

The Israeli prime minister addressed reporters in Jerusalem following reports of a heated exchange between his government and the Trump administration. The dispute reportedly centred on whether Israel should scale back its offensive in southern Lebanon as part of a negotiated ceasefire framework. Netanyahu rejected suggestions of a rift, stating that both governments share the same fundamental objective.

"Our position has been consistent," Netanyahu told Vanguard News in a statement. "Hezbollah must be stripped of its weapons. We agree on that completely." The prime minister did not specify any timeline for achieving that goal, though he emphasised that military pressure would remain the primary tool.

Economic Stakes in the Region

The disagreement carries immediate consequences for businesses operating across the eastern Mediterranean. Lebanon's economy has contracted sharply over the past two years, with the country's banking sector effectively frozen amid the ongoing conflict. Any escalation risks closing remaining trade corridors that connect Beirut to Gulf markets.

Regional oil markets reacted with caution to the news. Brent crude futures held steady at around $74 per barrel, though traders noted that sustained hostilities could disrupt shipping routes through the Mediterranean. Three major shipping firms have already rerouted cargo away from Lebanese ports since October.

Business Confidence at Risk

International investors have largely avoided new commitments in Lebanon since the conflict began. The Beirut stock exchange remains closed for extended trading, and foreign direct investment has dried up. Business leaders in the Gulf region have privately expressed concern that a prolonged Israeli operation could destabilise supply chains stretching from Cyprus to Jordan.

The uncertainty has also affected insurance markets. Lloyd's of London and several European underwriters have increased premiums for coverage in the eastern Mediterranean by approximately 15 percent since September, according to industry data reviewed by Vanguard News.

Ceasefire Negotiations Stall

Diplomatic efforts to broker a temporary ceasefire have made little progress. French mediators attempted to convene talks in Paris last month, but those discussions broke down over disagreements about which areas Israeli forces would withdraw from first. Lebanese government officials insist any agreement must include a firm commitment to disarming Hezbollah, a condition Israel has previously rejected as insufficient.

The militant group itself has not publicly commented on the Netanyahu-Trump discussion. Hezbollah's leadership has consistently maintained that its weapons serve as a deterrent against Israeli aggression and will not be surrendered under any circumstances.

Market Analysts Weigh In

Economists tracking the region say the real economic damage depends on whether the current diplomatic friction triggers a broader rupture between Israel and Washington. A complete breakdown in coordination could embolden Hezbollah to test Israeli resolve, potentially triggering a new wave of hostilities that closes Lebanon's airport and remaining border crossings.

"The worst-case scenario for markets would be a situation where neither side can claim victory," said one analyst at a London-based risk consultancy who asked not to be named. "That leaves investors with no clear path forward and forces businesses to maintain expensive contingency arrangements indefinitely."

What Happens Next

Netanyahu is expected to speak with Trump directly within the coming days, according to officials familiar with the matter. The two leaders will discuss whether to proceed with a phased military withdrawal tied to international guarantees that Hezbollah's arsenal will eventually be dismantled.

Markets will be watching for any joint statement following those talks. A clear agreement on disarmament could restore some investor confidence in Lebanese assets, though analysts caution that years of conflict have left deep structural damage that no diplomatic breakthrough can quickly repair.