Israeli Channel 15: Netanyahu-Aoun meeting in Washington mid-May is conditional on the continuation of the truce

Israeli Channel 15 reported that Prime Minister Netanyahu’s planned meeting with Lebanese President Michel Aoun in Washington in mid-May is contingent on the ongoing truce between Israel and Lebanon holding. The diplomatic progress hinges on sustained de-escalation along the northern border, affecting risk sentiment around Israeli assets. Should the truce falter, heightened geopolitical risk could pressure Israeli equities and bond yields, while reinforcing safe-haven flows into the shekel. Conversely, a confirmed meeting would signal improved regional stability, likely supporting risk appetite toward Israeli markets. Traders will watch for any statements from the IDF or Hezbollah regarding border incidents in the coming days as a near-term catalyst for volatility.

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