Israeli military says programme of pilot zones in southern Lebanon began on Monday and programme carried out in cooperation with US military and Lebanese armed forces; will respond forcefully to any violation of the agreement

The announcement about the Israeli military's establishment of pilot zones in southern Lebanon, in concert with the U.S. military and Lebanese forces, is a clear geopolitical development that may escalate tensions in the region. This could provoke market reactions particularly in energy and safe-haven assets like gold, as any violations reported could lead to a stronger military response, thus impacting supply dynamics and risk sentiment across related markets.