Israeli Foreign Minister Israel Katz stated that Israel is not pursuing an endless war with Iran, emphasizing the need for a strategic approach to regional tensions. The comments come amid heightened geopolitical risks following recent clashes in the Red Sea and Gulf of Aden, where Houthi rebels and Iranian-backed groups have targeted commercial vessels. Katz highlighted that Israel’s military actions are aimed at achieving specific security objectives rather than open-ended conflict, signaling a potential shift in rhetoric toward de-escalation. The statement could influence global markets, particularly commodities like oil and gold, which are sensitive to Middle East tensions. A perceived reduction in conflict risks might ease pressure on energy prices, while safe-haven assets like gold could see reduced demand. Traders should monitor regional diplomatic developments and military movements for signs of policy shifts. For MENA investors, the remarks may signal a cautious optimism about regional stability, though risks remain elevated. Gulf markets could benefit from improved sentiment if diplomatic channels open, but volatility in oil prices and geopolitical uncertainty will remain key factors. Watch for updates on Israeli-Iranian negotiations and Houthi activity in critical shipping lanes.

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