Israeli PM Netanyahu says in light of the repeated and ongoing appeals from Lebanon to open direct negotiations with Israel, instructed the cabinet yesterday to open direct negotiations with Lebanon at the earliest possible time, Axios' Ravid reports
- Negotiations will focus on the disarmament of Hezbollah from its weapons and the regulation of peace relations between Israel and Lebanon.
- Israel appreciates the call today by Lebanon PM to demilitarize Beirut.
- Message from Netanyahu comes after phone conversations he held yesterday with President Trump and White House envoy Witkoff. Senior American officials said that Witkoff asked Netanyahu to "calm" the attacks in Lebanon and to open negotiations.
Context
Israeli PM Netanyahu's decision to open direct negotiations with Lebanon marks a significant shift in regional diplomacy, focusing on Hezbollah's disarmament and peace relations. This development could de-escalate tensions, potentially affecting energy and commodity markets, particularly oil prices. It's worth monitoring how this evolves, as any progress may influence risk sentiment across currencies like the USD and JPY.
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