Israeli Defence Minister Katz says Israel will establish a buffer zone in southern Lebanon, modelled on what was implemented in Rafah, Al Jazeera reports; the army is now carrying out ground operations in Lebanese territory to control the front line
Context
Israel's establishment of a buffer zone in southern Lebanon, alongside ongoing ground operations, suggests an escalation in regional tensions. This could elevate risks for energy markets, particularly oil, and impact safe-haven assets like gold. Watch for potential volatility in related currencies, especially the USD and JPY, as geopolitical dynamics evolve.
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