Israeli Broadcasting Authority says a gradual withdrawal from Southern Lebanon can only be discussed after progress in the political process

The statement from the Israeli Broadcasting Authority indicates a conditional approach to military withdrawal from Southern Lebanon, contingent on political progress. This adds uncertainty to the geopolitical landscape, potentially affecting risk sentiment and driving safe-haven flows into assets like gold, while also impacting currencies such as the USD and JPY. Traders should watch for market reactions in commodities and currencies as further developments unfold.