Israeli army starts pilot to withdraw from three Lebanon villages, while it was separately reported that Israeli drones strike Gaza city centre

The Israeli army’s withdrawal from the three Lebanese villages signals a potential de-escalation in regional tensions, which could impact sentiment in risk assets. However, the simultaneous drone strikes in Gaza suggest ongoing conflict, creating a complex dynamic that may keep investors cautious. As geopolitical developments evolve, watch for implications on safe-haven assets like gold and the broader energy markets.