Israeli officials have signaled they will maintain a military presence and conduct operations in southern Lebanon for the time being, citing the need for Hezbollah to fully cease attacks and withdraw fighters from areas south of the Litani River before any broader pullback. A June 3 U.S.-mediated agreement between the Israeli and Lebanese governments established a conditional ceasefire and “pilot zones” for Lebanese army deployment, yet Hezbollah rejected the framework the following day and insisted on complete Israeli withdrawal as a precondition. Cross-border strikes have continued in early June, with Israeli defense statements emphasizing retention of buffer zones and restrictions on displaced populations returning. Follow-up political and security talks are scheduled for the week of June 22, while UNIFIL’s mandate runs through December 2026 amid discussions on post-mandate monitoring. Trader assessments of withdrawal timelines reflect these entrenched positions on security sequencing, enforcement mechanisms, and the durability of the latest truce.