Israel Orders North Gaza Evacuation, US Labels Hamas Worse Than ISIS; Oil Surges

Stay updated on Israel's imminent ground operation in Gaza, its global repercussions, and the escalating tensions in the Middle East. Benzinga brings you the latest.

The situation in Gaza Strip is reaching a boiling point as the Israeli Defense Forces (IDF) have issued an evacuation mandate for the northern sector of the city, foreseeing an imminent ground operation aimed at striking at the core of Hamas.

The evacuation from Gaza could affect more than 1 million Palestinians, and the United Nations, in response, has sounded a dire warning, predicting catastrophic civilian displacement on an unprecedented scale.

The UN has underscored the impracticality of relocating such a massive population within Gaza, emphasizing the inevitable humanitarian fallout.

Israel’s Evacuation Order Sparks Reactions

The mounting tensions in the region have provoked leaders across the Middle East to voice their concerns. As the Times of Israel reported Friday, Jordan’s King Abdullah II has urgently reached out to U.S. Secretary of State Antony Blinken, seeking international intervention to avert the displacement of Palestinians.

Palestinian Authority President Mahmoud Abbas has categorically rejected the evacuation order. Abbas’s stance stems from his belief that this forced displacement would be akin to a “second Nakba,” a reference to the tragic exodus in Palestinian history occurred in 1948. On the ground, Hamas seems to be preventing residents of the northern strip from adhering to the evacuation orders, The Times of Israel reports.

Internationally, Russian President Vladimir Putin has castigated Israel’s impending ground offensive in Gaza, labeling the potential civilian casualties as “unacceptable.”

Adding a layer of uncertainty to the region’s volatile situation, Lebanon’s Iran-backed Hezbollah movement has declared its readiness to join forces with Hamas when the time is deemed right. Hezbollah deputy chief Naim Qassem made this declaration during a pro-Palestinian rally in Beirut’s southern suburbs, signaling a potential escalation of hostilities in the region.

Second Round Of US Ammunitions Arrive Friday

Meanwhile, Israel’s Defense Minister Yoav Gallant has announced the arrival of a second U.S. aircraft carrying munitions for the IDF, signaling unwavering U.S. support.

Speaking alongside U.S. Secretary of Defense Lloyd Austin in Tel Aviv, Gallant underscored the strength of the Israel-U.S. alliance. Austin has asserted that Hamas poses a more significant threat than ISIS in several aspects.

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Financial Markets React to Geopolitical Jitters

Mounting indications that Israel is preparing for a ground invasion of Gaza sent risk aversion surging across markets on Friday, as investors sought refuge in safe havens.

Treasuries experienced a rally, with yields retracting from the spike seen on Thursday. The 10-year yield, along with the 30-year yield, both dropped by 9 basis points. In Europe, long-term yields followed suit, with the German 10-year Bund also declining by 9 basis points.

Gold, as tracked by the SPDR Gold Trust GLD, saw a notable uptick of 1.6% just ahead of the New York market opening, on track for its strongest daily gain since May.

Conversely, stock markets and U.S. equity futures faced downward pressure. The Euro STOXX 50 index recorded a 0.7% decline, while futures linked to the S&P 500 showed a 0.1% decrease.

The U.S. dollar index (DXY), as tracked by the  Invesco DB USD Index Bullish Fund ETF UUP, held steady, while the Japanese yen outperformed other currencies.

The Israeli shekel (ILS) fell 0.6% against the dollar, on track for its fifth straight session of losses.

Amid the turmoil in the Middle East, oil emerged as the primary beneficiary. The West Texas Intermediate (WTI) crude oil price surged by over 3.5%, surpassing the $85 per barrel mark.

Price Actions in Global Markets Ahead of Wall Street Opening on Friday

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