WATCH: Trump announces Israel and Lebanon have agreed to 3-week ceasefire extension

Trump announced that Israel and Lebanon have agreed to a three-week ceasefire extension, reducing immediate regional conflict risks. This development supports risk-on sentiment by lowering geopolitical tensions in the Eastern Mediterranean, a region critical to energy and trade flows. Assets tied to Israeli markets and regional defense stocks may see reduced volatility, while broader Middle East risk premia in oil pricing could ease. The extension may also support investor confidence in regional economic stability, benefiting nearby emerging market equities and bond spreads. Traders will watch for official confirmation from Middle Eastern governments and any follow-up statements from U.S. and UN officials on compliance monitoring.

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