Overview:

Lebanon's government advanced multiple economic initiatives this week, including airport rehabilitation and transport sector development discussions with the World Bank, while regional energy markets stabilized following the resumption of normal shipping operations through the Strait of Hormuz. Policy decisions on taxation and tariffs sparked industry pushback, particularly from the poultry sector and petroleum workers' unions, as the government addressed budgetary pressures and wage obligations.

Details:

The Ministry of Public Works and Transport, led by Minister Faiz Rasmani, held strategic meetings focused on infrastructure development and service-oriented projects. Separately, the Caliuate Airport rehabilitation project continues to advance, with Sky Lounge Services confirming accelerated development work on President Martyr Rene Mouawad Airport operations, signaling progress on a longstanding national infrastructure objective.

Taxation decisions generated significant opposition from key economic sectors. The Lebanese Poultry Syndicate, chaired by William Petros, issued a statement expressing alarm over new tax impositions, warning of threats to production and food security. Similarly, the Petroleum Workers and Employees Union, represented by Walid Hassani Aleeq, rejected additional tariff decisions as disconnected from citizen welfare concerns.

Oil prices declined as the Hormuz passage normalized, with Brent crude retreating more than three dollars on Wednesday amid easing supply concerns. The U.S. Department of Energy confirmed approximately 72 vessels transited the strait within 24 hours, with approximately 20 million barrels in daily movement capacity restored. The UAE reported recovering 85 percent of pre-conflict crude export levels according to the International Energy Agency.

The Council of Ministers approved supplementary budget allocations for Ogero salary differentials and employee benefits, proposed by Minister of Communications Charles El Hajj, addressing longstanding wage settlement obligations.

Outlook:

Investors are monitoring Lebanon's capacity to balance fiscal consolidation with sectoral support amid escalating taxation. Regional energy markets remain sensitive to supply flow updates and geopolitical developments, particularly regarding OPEC quota negotiations and Iraq's stated review of membership options.