Hezbollah says they targeted a gathering of Israeli enemy vehicles and soldiers with a guided missile in Tel al-Nahas in southern Lebanon

This escalation involving Hezbollah and an attack on Israeli forces signals a potential increase in regional tensions, which historically leads to risk-off sentiment in markets. Investors may react by seeking safe-haven assets like gold and the JPY, while also monitoring crude oil prices and FX movements, particularly in the USD which could be impacted by perceived geopolitical instability.