Israel’s Defence Minister Katz reiterates Israel will create a buffer zone in southern Lebanon and control the region up to the Litani River

Israel's Defence Minister's commitment to establishing a buffer zone in southern Lebanon could escalate tensions in the region, which historically impacts oil prices and regional stability. This move may lead to increased volatility in commodities and risk-sensitive assets, while the USD could strengthen against currencies of areas in conflict as investors seek safe havens. The situation warrants close monitoring, as any escalation could shift the broader geopolitical landscape significantly.