Secretary Blinken Visits Israel, Affirms Strong US Support Amid Hamas Attacks; Markets Dip As Tensions Escalate

U.S. Secretary of State Antony Blinken arrived in Israel early Thursday on a mission to reaffirm unwavering American support for Israel.

His visit included critical meetings with Israeli Prime Minister Benjamin Netanyahu and President Isaac Herzog. Blinken’s message was crystal clear: the United States stands firmly behind Israel’s right to self-defense against the relentless barrage of terrorist attacks launched by Hamas.

Blinken expressed heartfelt words during his speech: "It's hard to find the right words. It's beyond what anyone would ever want to imagine. It almost defies comprehension. This is a moment where everyone needs to make clear that there is revulsion, disgust, and a determination not to allow this to go forward."

Boosting Defense Efforts

As the Washington Post reported Thursday, the U.S. Department of Defense has ramped up its support by ordering additional advanced fighter jets, including F-16s, to be deployed in the region.

Simultaneously, efforts are underway to expedite the delivery of military equipment already committed to Israel.

National Security Council spokesman John Kirby emphasized that there is no intent to deploy U.S. troops on the ground, the Post reports.

Evacuation And Regional Diplomacy

The U.S. government will commence charter flights for U.S. citizens and their immediate families looking to leave Israel, beginning Friday, as tensions persist.

Blinken is set to extend his diplomatic mission by visiting Saudi Arabia, Egypt, and other allied Middle Eastern nations, underscoring the U.S. commitment to preventing the Israel-Hamas conflict from spreading further.

Blinken is scheduled to land in Qatar on Friday for talks with the Qatari Prime Minister. The U.S. Secretary of State has also asserted the United States’ right to reinstate a freeze on $6 billion in Iranian funds.

Markets Flip To Losses

The markets experienced a sudden turnaround during afternoon trading, with risk aversion taking the lead due to escalating geopolitical tensions and a higher-than-expected increase in inflation in September.

The S&P 500 index, as monitored through the SPDR S&P 500 ETF Trust SPY, experienced a significant 0.9% decline. This downturn also impacted the tech sector, which had earlier shown gains, resulting in losses for the Invesco QQQ Trust QQQ, down by 0.8%.

Simultaneously, the Israeli shekel endured its fourth consecutive day of depreciation, losing 0.6% on Thursday. This decline brought the currency to levels not witnessed since January 2016.

The iShares MSCI Israel ETF EIS saw a substantial drop of 1.8%, marking its lowest point since May 2020. Cathie Wood’s ARK Israel Innovative Technology ETF IZRL also extended its weekly decline, plummeting by 2.3% today.

Across other ETFs tracking Middle Eastern markets, a prevailing downside pressure was evident as investors reduced their regional holdings. The iShares MSCI Qatar ETF QAT mirrored this sentiment with a sharp decline of 2.3%. Additionally, the broader emerging markets performed poorly, with the iShares MSCI Emerging Index Fund EEM registering a 1.2% decrease.

Risk Aversion Hit Global Stocks After Midday Thursday Trading