TRUMP TELLS NETANYAHU TO LIMIT LEBANON STRIKES TO "SURGICAL" OPERATIONS AS THE CEASEFIRE BEGINS TO UNRAVEL. - AXIOS

Former President Donald Trump advised Israeli Prime Minister Benjamin Netanyahu to limit military actions in Lebanon to "surgical" operations as the fragile ceasefire in the region shows signs of deterioration, according to Axios. This intervention highlights growing concern over escalation risks in the Middle East, which could tighten global risk appetite and boost safe-haven flows. Heightened geopolitical tensions particularly expose Israeli defense stocks, regional energy supplies, and equity markets sensitive to conflict spillover, such as those in neighboring countries or with strategic shipping routes. The market will focus on any official response from the Israeli government or U.S. foreign policy figures, as well as potential follow-on statements from Iran or Hezbollah, which could signal broader regional conflict. Upcoming U.S. intelligence briefings or military movement reports in the Eastern Mediterranean will serve as key near-term catalysts for volatility in defense and energy sectors.

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