‘People are destitute’: Lebanon’s spiralling prices fuel fears of social unrest

What Happened

Lebanon’s fuel prices surged to almost $1.60 per litre this week, doubling since the start of the US-Israel war on Iran, according to the article. The rise is part of a global cost increase that has already sparked protests in neighbouring Syria. The Lebanese trade union federation urged the government on Monday to declare a state of economic emergency and threatened to announce an open-ended general strike next week. President Joseph Aoun said the government will address the unions’ demands, though the cash-strapped state has little capacity to ease the impact on essential goods. The Ministry of Economy raised bread prices for the second time this year last week, citing higher fuel-driven production costs. The World Bank projected Lebanon’s economy will contract by 6.4 percent in 2026 after renewed fighting between Hezbollah and Israel in March shattered the modest recovery recorded since the 2024 ceasefire. Residents quoted by Middle East Eye described destitution: Bassam, a furniture-removal truck driver in Beirut’s southern suburbs, said some people cannot afford bread; Ihab Abou Zeineddine, a driver earning $600 per month, said people are destitute. The Lebanese banking sector carries more than $72bn in accumulated losses and public debt stands at 176.5 percent of GDP, while the currency has lost more than 98 percent of its value against the dollar.

Key Actors

Why It Matters

Lebanon’s fuel and bread price surge threatens social unrest in a country already reeling from financial collapse, currency collapse, and the aftermath of Hezbollah-Israel conflict. The economic deterioration could destabilise the fragile post-ceasefire political environment and fuel protests similar to those in Syria, compounding sectarian and institutional fragmentation. With public debt at 176.5 percent of GDP and banking losses exceeding $72bn, the state has little fiscal room to absorb the shock, leaving working-class and war-affected populations—especially in Beirut’s southern suburbs—facing severe hardship.

Watch For

Monitor the nationwide mobilisation called for next Wednesday by transport-sector unions and federations, and whether the Lebanese trade union federation carries out its threatened open-ended general strike next week. Watch for any government declaration of a state of economic emergency, further bread or fuel price adjustments by the Ministry of Economy, and protest activity in Beirut’s southern suburbs and other areas. Also track whether unrest in Syria over fuel prices spreads or influences Lebanese protest dynamics.