Israel-Hamas War: Day 21 – US Strikes Iranian-Backed Bases In Syria, Requests IDF To Postpone Gaza Ground Invasion; IMF Warns Of Growth Impact On Region

It has been three weeks since the tragic events of Oct. 7, when the Palestinian militant group Hamas carried out a series of deadly attacks in Israel. These attacks resulted in deaths of Israeli civilians and the capture of over 220 hostages who are still being held in the Gaza Strip. In response, the Israeli Defense Forces (IDF) have taken strong action, including airstrikes on the Palestinian enclave, which have caused casualties among the civilian population.

Here are the latest developments in this ongoing conflict:

• Israeli forces carried out focused incursions into Gaza for a second consecutive night, as reported by the IDF’s official X account on Friday, as part of their preparations for the next phase of the conflict with Hamas.

• According to The Wall Street Journal, Israel has reportedly agreed to temporarily postpone a ground invasion into Gaza at the request of the U.S. This delay is intended to allow the U.S. to deploy its air defenses to protect American troops in the region.

• Philippe Lazzarini, the head of the UN Relief and Works Agency for Palestine Refugees (UNRWA), issued a warning on Friday about the growing problems of hunger and disease in Gaza. He emphasized the urgent need for increased aid in the enclave, stating that current levels of assistance were inadequate for the over 2 million people residing in Gaza.

• According to International Monetary Fund (IMF) Managing Director Kristalina Georgieva, the Israel-Hamas conflict is likely to have negative economic repercussions for other Middle Eastern nations, including Egypt, Lebanon, and Jordan. During an interview with the CNN, Georgieva mentioned that the impact is already visible, with potential effects on tourism, higher costs for insuring the movement of goods, and increased investor caution in the region. The IMF said that there’s also a risk of more refugees in countries that are already hosting significant numbers.

• The U.S. conducted strikes on two bases in eastern Syria on Thursday night, believed to be used by Iranian-backed groups. This marked the first offensive military response by the U.S. to a series of drone and rocket attacks on troops stationed in Iraq and Syria, according to the Pentagon.

Market Reactions

Risk sentiment rebounded on Friday ahead of the market open, as traders welcomed a relatively benign Personal Consumption Expenditure (PCE) price index report, that solidified expectations of no further Fed rate increases, at least for the time being.

Futures on the S&P 500 Index were up by 0.4%, and those on the Nasdaq 100 were up by 0.9%. This sparks optimism for a positive trading session, especially after the SPDR S&P 500 ETF Trust SPY closed in the red for 7 out of the last 8 sessions.

Treasury yields were steady, while the U.S. dollar index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF UUP, fell 0.1%.

Read more: Fed’s Favorite Inflation Gauge Matches Forecasts, Cementing Interest Rate Pause Next Week

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