CHANNEL 15 QUOTED AN ISRAELI SOURCE: THE ARMY RECOMMENDED THE POLITICAL STAFF TO EXPAND THE ATTACKS IN LEBANON

Channel 15 reported that the Israeli military advised political leadership to escalate attacks in Lebanon, signaling a potential broadening of hostilities in the region. This development weighs on regional stability, reinforcing risk-off sentiment and tightening geopolitical risk premiums in Middle East-exposed assets. Israeli government bond yields may rise on heightened fiscal and security concerns, while Lebanese Eurobonds and the parallel lira face additional depreciation pressure due to increased conflict spillover risks. Cross-border infrastructure and energy projects in the Eastern Mediterranean are particularly vulnerable to recalibration of risk assessments. Traders will watch for any official confirmation from the Israeli cabinet or defense establishment on escalation decisions in the next 48 hours.

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