Israel Says It Expanded Ground Operations in Southern Lebanon to Remove Direct Threats

Israel’s military said it has expanded ground operations in southern Lebanon. Markets are watching the potential for escalating tensions in the Middle East and increased volatility in global oil prices.

Walter Bloomberg reported on May 26 that an Israeli military official said the operation had been expanded beyond the so-called Yellow Line in southern Lebanon.

The operation is intended to remove “direct threats to Israeli citizens and forces,” the official said.

Israel has recently intensified military operations in southern Lebanon, citing the threat of rocket and drone attacks from Hezbollah. The military is also pushing to widen a buffer zone near the border and dismantle Hezbollah’s military infrastructure.

Tensions on the Lebanese front remain high even as the US and Iran continue talks on extending a ceasefire and pursuing nuclear negotiations. Hezbollah, an Iran-backed armed group, remains one of the main variables in the conflict between Iran and Israel.

Market participants say any broader military conflict in the Middle East could drive volatility in global financial markets, including oil prices and dollar flows.