Sky News Arabia Correspondent says Israeli shelling on the town of Kunin and a major explosion and demolition of homes in the tents in southern Lebanon

The reports of Israeli shelling in southern Lebanon and significant explosions signal a potential escalation in regional tensions, which usually leads to increased volatility in energy prices and a flight to safe-haven assets like gold. This development may influence currency markets, particularly for the USD and JPY, as investors typically react to geopolitical risks by seeking out stability. Watch for impacts on oil prices and broader market sentiment in the coming sessions.