'Like Gaza': Israel Says It Plans to Demolish All Homes in Lebanese Border Villages

Defense Minister Israel Katz said all houses in Lebanese villages near the Israeli border will be demolished 'like in Rafah and Beit Hanoun', signaling a heightened risk of escalation on the Israel-Lebanon front. Expect near-term risk-off flows, potential upward pressure on oil and defense names, and increased safe-haven demand; monitor for military escalation and any disruptions to regional energy routes.

Analysis

Defense Minister Israel Katz said all houses in Lebanese villages near the Israeli border will be demolished 'like in Rafah and Beit Hanoun', signaling a heightened risk of escalation on the Israel-Lebanon front. Expect near-term risk-off flows, potential upward pressure on oil and defense names, and increased safe-haven demand; monitor for military escalation and any disruptions to regional energy routes.