Lebanese President Says Contacts With Israel Are Ongoing To Extend Ceasefire

Lebanese President Michel Aoun confirmed ongoing indirect talks with Israel aimed at extending the current ceasefire, signaling continued diplomatic efforts to stabilize the northern border. The communication channel, facilitated by U.S. mediators, influences regional risk appetite and could reduce military escalation risks affecting Israeli defense contractors and regional energy infrastructure. Markets are assessing the durability of the truce, with Israeli bond yields and equity markets—particularly firms in northern industrial zones—sensitive to shifts in conflict intensity. A breakdown in talks or renewed hostilities would likely trigger safe-haven flows into U.S. Treasuries and gold, while prolonging calm may support risk assets in the Eastern Mediterranean. Traders will watch for the next U.S.-brokered update on border security arrangements, expected within the coming week.

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