MACRON: WE SUPPORT EXTENDING THE CEASEFIRE IN LEBANON AND CALL FOR A PERMANENT PEACE THAT RESPECTS LEBANON'S UNITY AND SOVEREIGNTY.

French President Emmanuel Macron expressed support for extending the ceasefire in Lebanon and emphasized the need for a permanent peace that upholds the country’s unity and sovereignty. This diplomatic push could temper regional escalation risks, reducing immediate war risk premiums priced into Middle East-sensitive assets. Markets are particularly focused on how such statements influence the probability of broader regional conflict, especially given Lebanon’s proximity to ongoing tensions with Israel and Hezbollah. The statement may support risk-on sentiment, particularly in energy markets where supply disruption fears have recently underpinned crude prices. Traders will watch for reactions from regional actors and any follow-up coordination with U.S. or EU officials as a near-term catalyst for shifts in war-risk pricing.

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