Israel expects Lebanon offensive to outlast Iran conflict, with IDF preparing extended campaign against militant group Hezbollah, according to people familiar with the discussion cited by Financial Times.

The expectation of an extended Israeli conflict with Hezbollah signals potential regional instability, which could elevate risk premiums in energy and forex markets. Traders should be mindful of implications for oil prices and safe-haven assets, as heightened tensions could disrupt supply and influence USD movements against commodity currencies.