Lebanese President: Israel's targeting of our army patrol is a violation of sovereignty despite our efforts in Washington negotiations to put an end to the attacks

Lebanese President Michel Aoun has formally condemned an Israeli strike on a Lebanese army patrol, characterizing the incident as a direct violation of national sovereignty despite ongoing diplomatic mediation efforts in Washington. This escalation introduces a significant geopolitical risk premium, as the potential for a broader regional conflict threatens to destabilize the Levant and disrupt regional capital flows. Israeli financial markets remain highly sensitive to these developments, as the risk of a multi-front military engagement could trigger a sharp contraction in investor risk appetite and increase volatility across the shekel and local equity indices. Traders are now shifting focus toward the upcoming release of Israeli security cabinet meeting minutes and any subsequent statements from the U.S. State Department regarding the status of the ceasefire negotiations, which serve as the primary barometer for near-term regional stability.

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