NABATIYE, LEBANON – SEPTEMBER 28: Smoke rises after an Israeli attack on the town of Sheba, Nabatiyah governorate, on September 28, 2024.
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Israel launched a ground invasion of Lebanese territory and markets were once again on edge over the conflict between the Jewish state and the Iran-backed Hezbollah militant group.
In a statement earlier TuesdayThe Israel Defense Forces said they had begun “limited, localized and targeted ground attacks” against targets in southern Lebanon that they said “posed a direct threat to Israeli communities in northern Israel.” The Israel Defense Forces said Israeli air force and artillery were supporting the attack.
The ground invasion marks a shift in the Jewish state’s military attention from the Gaza Strip, where it has been retaliating for an October 7 terrorist attack by the Palestinian militant group Hamas.
Meanwhile, Iran-backed Hezbollah and Israel have been engaged in cross-border fighting since last year, when the Lebanese group declared solidarity with the Palestinian cause.
Israel’s attack in Lebanon comes after the Jewish state assassinated Hezbollah leader Hassan Nasrallah on September 27, disrupting the group’s command structure and following a devastating bombing campaign . nbc news report So far, more than 1,000 people have been killed and 1 million people have been displaced in Lebanon.
Just last week, Western allies urged Israel to consider a 21-day ceasefire on the Lebanese-Israeli border.
Translated on Google social media postsIsraeli Defense Minister Yoav Galant said he had spoken with U.S. Defense Secretary Lloyd Austin and stressed that Israel’s latest actions “are based on efforts to eliminate Hezbollah’s leadership and weaken Hezbollah’s offensive capabilities.” on the basis of ongoing measures.”
In comments published by Hezbollah-aligned Al Manar media, officials from the group condemned the Israeli airstrikes and called on the United Nations to provide relief supplies. According to Google Translate, Hezbollah said claims that Israel had entered Lebanon were “false” and that no “direct ground clashes” had been reported. statement.
market impact
The conflict in Lebanon itself has exacerbated a financial crisis that has plagued the country since a loss of dollar liquidity in 2019.
At the same time, Israel’s own economy also showed the strain of multiple military operations. According to Reuters, Bank of Israel Governor Amir Yaron said on Tuesday that due to the ongoing conflict, the central bank is expected to keep interest rates unchanged at the current 4.5% until the second half of next year and lower its growth forecast for 2025. .
Globally, oil-rich Middle Eastern markets have so far experienced a slump since Hamas’s Oct. 7 attack triggered Israeli military operations in the Gaza Strip, retaliatory cross-border attacks in Lebanon and attacks by Houthi rebels in Yemen. Nearly a year of intense conflict.
Oil prices, historically sensitive to geopolitical turmoil, have resisted a prolonged surge, held back by worries about weakening global demand and potential increases in supply.
At 2:50 pm London time on Tuesday, Brent crude oil futures expiring in December were trading at about $73.10 a barrel, up 2.1% from the previous settlement price. The front-month November WTI contract rose 2.27% to $69.70 a barrel.
“The Israeli attack in Lebanon that killed the leader of Hezbollah represents a major escalation of hostilities in the Middle East, and now all eyes are on Israel and Iran’s next moves. For its part, this The upgrade will lead to higher oil prices and inflation.
Questions remain about whether the hostilities will attract other countries in the Gulf Cooperation Council (GCC), including key U.S. regional ally Saudi Arabia, which has historically supported the Palestinian cause but has so far not been militarily involved in the ongoing conflict. Middle East Conflict.
“We believe the GCC remains on the sidelines, only providing humanitarian aid to Gaza and Lebanon. Iran still appears to lack the will and military capability to respond, and is not prepared to risk domestic instability amid leadership uncertainty. Risk Jaap Meijer, head of research at Arqaam Capital, told CNBC’s Dan Murphy on Tuesday.
“We believe that as we saw in the initial response on the 7thth October Attacks: GCC (markets) initially sold off but recovered quickly as markets knew the GCC would not be involved in this conflict between Israel and Iran,” he added.
However, ongoing fighting between Israel and Yemen – including new Houthi drone attacks on Israeli military posts in Eilat and Tel Aviv – Yahyaa Saree, a spokesman for the armed group, said – Increase the risk of further maritime incidents in the Red Sea. Ambrey Intelligence reported an incident involving two ships at noon on Tuesday in a key transit area linking the Asia-Pacific and the Mediterranean.
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