US State Department says Israel and Lebanon's cessation of hostilities will be extended by 45 days to enable further progress

The US State Department's announcement that the cessation of hostilities between Israel and Lebanon will be extended by 45 days suggests a potential for reduced immediate volatility in the region.

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US State Department says Israel and Lebanon's cessation of hostilities will be extended by 45 days to enable further progress

A senior Israeli official told Channel 12 that Tel Aviv is preparing for the possibility of an imminent resumption of war with the Islamic Republic

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This is critical as it may stabilize energy markets and impact risk sentiment in currencies like the USD, especially if the extension leads to further diplomatic progress. Traders should watch how this development influences oil prices and safe-haven asset flows.

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