Israeli army says it bombed sites belonging to Hezbollah in various areas in southern Lebanon, including sites belonging to the "Radwan Force."

The Israeli military conducted airstrikes on Hezbollah-affiliated sites in southern Lebanon, including those linked to the elite Radwan Force, escalating cross-border tensions. This development heightens regional risk premium in the Eastern Mediterranean, particularly affecting sovereign and corporate credit spreads in Lebanon and neighboring frontier markets due to potential spillover effects. Geopolitical risk repricing is most evident in Israeli and Lebanese bond yields, regional equities, and energy infrastructure assets exposed to supply disruption. Increased military activity threatens fragile stability in the region, which could deter foreign capital flows and elevate insurance costs for shipping and energy transport in the eastern Mediterranean. Traders will watch for any official response from Hezbollah or Iranian-linked actors, as well as statements from U.S. and UN officials monitoring the Israel-Lebanon border.

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