Lebanon displacement drops as 860,000 return but crisis persists

KUALA LUMPUR, 19 AUGUST 2026 —

About 860,000 people displaced by fighting in southern Lebanon have returned home, the United Nations said on Tuesday, while 360,000 remain uprooted and the humanitarian crisis remains severe.

The return figure is drawn from UN data released as Israeli air strikes over the weekend triggered fresh displacement and clashes continued between Hezbollah and Israeli forces despite multiple ceasefires since April. The latest truce talks, mediated by the United States in late June, aimed for Hezbollah’s disarmament and an Israeli withdrawal, neither of which has occurred.

According to UN figures, roughly 360,000 people are still displaced, with at least 22,000 living in collective shelters. Extensive property damage, severed utilities and ongoing insecurity have left many unable to re-enter damaged homes, forcing them into temporary quarters nearby.

“Humanitarian needs remain substantial,” the UN said in a statement. “Widespread damage to housing, water systems, electricity networks, schools, health facilities, agriculture, land and community infrastructure continues to constrain prospects of recovery.”

More than 700,000 people are still affected by damaged water networks in southern Lebanon, the UN added. Most returnees cannot yet occupy their homes, relying instead on rented accommodation or temporary hosts while waiting for rubble removal, repairs and restoration of public services.

Funding shortfalls further limit the response. The UN’s Flash Appeal of $639.9 million is only 48% funded, while UNHCR’s Lebanon operation for 2026—requiring $472.3 million—has received just 24% of its target.

Lebanon’s government, supported by UNHCR and other agencies, is providing protection, shelter, cash aid and psychosocial support, but capacity remains constrained by the funding gap.

For Malaysian businesses with operations or supply chains in the Middle East, the prolonged instability and humanitarian strain in Lebanon pose elevated risk to regional logistics and staff safety.