"Israeli media: A limited operation against Iran may be carried out to avoid a prolonged war", Al Arabiya reports

The suggestion of a limited operation against Iran indicates a potential for escalated military actions, which could heighten regional tensions. This situation typically benefits safe-haven assets like gold and the JPY while negatively impacting risk-sensitive currencies such as the EUR and GBP. Traders should monitor energy prices, particularly WTI, as military actions may disrupt oil supply, influencing inflation expectations and global market sentiment.