The sanctions will entail restrictions of entry to anyone associated with the terrorist group.
The agreement would be the third after the UAE announced normalization in August and Bahrain in September.
Any new government will have to contend with a financial meltdown worsening by the day, a COVID-19 outbreak and the fallout of the massive explosion at Beirut port.
Fractious political leaders, in power for decades, have traded blamed for hindering progress as Lebanon sinks into its worst crisis since its 1975-1990 civil war.
It is essential to keep in mind at this point that the negotiations relate only to the maritime border, nothing else. Neither side intends to discuss land border disputes or additional issues.
The Beirut explosion and maritime deal struck between Israel and Lebanon are shifting views of Hezbollah within the country.
“I also underscored the importance for Lebanon's political leaders to implement reforms as called for by the Lebanese people,” Pompeo tweeted.
The growing menace of Hezbollah must be tackled, not merely for the sake of Lebanon’s neighbors, including Israel, but for the sake of the Lebanese themselves.