In a significant escalation of hostilities, Israel has resumed airstrikes on Gaza following the collapse of a ceasefire agreement with Hamas. The renewed attacks have resulted in hundreds of casualties and have drawn widespread international concern. This development follows the United States’ military actions against the Iran-backed Houthis in Yemen, marking a broader confrontation with militant groups in the region.
Israel’s Renewed Military Operations
Israeli Prime Minister Benjamin Netanyahu has declared that the latest offensive is “only the beginning,” emphasizing that military operations will continue until all hostages taken during Hamas’ October 2023 attacks are released. Foreign Minister Gideon Sa’ar reiterated this stance, stating, “This is not a one-day attack. We will continue the military operation in the coming days.”
Hamas reports that at least 404 individuals have been killed since the airstrikes began, including senior members, while many remain missing. The Palestinian group, designated as a terrorist organization by the US and several other countries, accuses Israel of violating the terms of the previous ceasefire, including obstructing humanitarian aid into Gaza.
Wider Regional Conflict
The Israeli strikes have not been limited to Gaza. Reports confirm overnight attacks in Lebanon and Syria, coinciding with US airstrikes on Houthi positions in Yemen. The Houthis, who have targeted Red Sea shipping lanes, have vowed retaliation, claiming responsibility for a ballistic missile attack on Israel’s Nevatim air base. The group warns of further strikes unless Israel halts its operations in Gaza.
US President Donald Trump has taken a firm stance, asserting that any Houthi attacks would be considered an act of aggression by Iran, which supports Hamas, Hezbollah, and the Houthis. His administration has imposed additional sanctions on Tehran while maintaining the “maximum pressure” strategy on Iran’s nuclear program.
International Responses and Market Reactions
The renewed violence has triggered strong reactions globally. Iran’s foreign ministry condemned Israel’s actions, warning of “catastrophic consequences for global peace and security.” Meanwhile, Saudi Arabia criticized Israel for disregarding international humanitarian law, and Qatar cautioned that the situation could “ignite” the entire region.
Economic markets have also reacted sharply to the latest developments. The escalation has driven gold prices to record highs, while Brent crude briefly surpassed $72 per barrel. The Israeli shekel weakened by 0.9%, reflecting market concerns over prolonged instability.
Hostage Crisis and Political Fallout
The hostage situation remains a key point of contention. Hamas had released 38 hostages during the ceasefire, while Israel freed over 1,700 Palestinian prisoners. However, negotiations failed to extend the agreement, with both sides unable to reach a compromise. Israel asserts that approximately 60 hostages remain in Gaza, with only 25 believed to be alive.
Families of hostages have expressed frustration over the renewed fighting, accusing the Israeli government of “giving up” on their loved ones. Despite these concerns, Netanyahu’s government has secured additional parliamentary support, strengthening its coalition following the ceasefire’s collapse.
Looking Ahead
As military operations intensify, international efforts to broker a new ceasefire remain uncertain. The US had proposed a “bridge” deal to extend the truce beyond Ramadan and Passover, aiming to facilitate further hostage exchanges and increase humanitarian aid. However, the resumption of hostilities suggests that diplomatic efforts face significant obstacles.
The coming days will be critical in determining whether the conflict escalates further or if renewed negotiations can restore stability to the region. Meanwhile, traders and investors will closely monitor the financial impact of the crisis on global markets.
