NABATIYE, LEBANON – SEPTEMBER 28: Smoke rises after an Israeli attack on the town of Sheba, Nabatiyah governorate, on September 28, 2024.
Anadolu | Anadolu | Getty Images
Israel has launched a ground invasion of Lebanese territory, with markets nervous about a potential serious escalation in the conflict between the Jewish state, the Hezbollah militant group and Iran itself.
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.
Meanwhile, a senior White House official told NBC News on Tuesday that the United States has seen signs that Iran is preparing to take action. Launch a ballistic missile attack “immediately” About Israel.
The official said any direct Iranian attack on Israel “would have serious consequences for Iran.”
Oil prices were sharply higher on Tuesday, with Brent crude futures expiring in December trading at about $73.83 a barrel at 3:30 pm London time, up 3% from the previous settlement. The front-month November WTI contract rose 3.3% to $70.34 a barrel.
On September 27, 2024, Israeli troops deployed in the Upper Galilee region of northern Israel.
Under Marey | AFP | Getty Images
Israel’s ground invasion of Lebanon marks a shift in the Jewish state’s military attention away from the Gaza Strip, where it has been retaliating for an October 7 terror attack by 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.
A woman reads the Quran in front of the ruins of buildings in the Haret Hreik neighborhood of Beirut’s southern suburbs on September 29, 2024, which were razed to the ground by an Israeli attack on September 27. Hezbollah leader Hassan Na Hassan Nasrallah was killed.
– |AFP|Getty Images
“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 US regional ally Saudi Arabia, which has historically supported the Palestinian cause but has so far not been militarily involved in the ongoing conflict in the Middle East.
“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. Risks, Jaap Meijer, head of research at Arqaam Capital, told CNBC’s Dan Murphy on Tuesday, before U.S. officials commented to NBC News.
“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.
