Israeli politician and former General Benny Gantz has endorsed the US-brokered agreement between Israel and Lebanon, describing it as a potential diplomatic breakthrough. Despite a ceasefire, Gantz emphasized that Israeli troops must stay in Lebanon, a stance that complicates prospects for a complete military withdrawal. His remarks come amid ongoing discussions about extending the ceasefire, with markets reacting to the implications for peace in the region.
The market for a permanent peace deal between Israel and Hezbollah appears less optimistic following Gantz’s comments, given the emphasis on maintaining a military presence. Meanwhile, the likelihood of a ceasefire extension has increased, with pricing suggesting a nearly certain extension by June 7. Conversely, the chances of a full military withdrawal from Lebanon by the end of June have decreased, reflecting Gantz’s insistence on troop presence.
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