The death of Yahya Sinwar, the Hamas leader and mastermind behind the Oct. 7, 2023 attacks, marks a significant turning point in the year-long Gaza conflict, according to Israeli Prime Minister Benjamin Netanyahu.

Sinwar was killed by Israeli forces in Rafah on Thursday, in what Israel sees as a major victory in its ongoing war with the militant group.

Netanyahu Says ‘This War Can End Tomorrow,’ Hamas Calls For Gaza Withdrawal

In a speech posted on social media Friday, Netanyahu described Sinwar's killing as a pivotal moment and said: "While this is not the end of the war in Gaza, it’s the beginning of the end." He said the fighting would continue if Hamas does not surrender and return Israeli hostages.

"This war can end tomorrow," Netanyahu said. "It can end if Hamas lays down its arms and returns our hostages. Hamas is holding 101 hostages in Gaza."

Netanyahu also used the occasion to address the broader regional context, accusing Iran of orchestrating militant networks across the Middle East, including Hamas.

Hamas confirmed Sinwar's death soon after the Israeli operation.

Khalil al-Hayya, a senior Hamas leader and top negotiator, said that while Sinwar's loss is a blow to the movement, it will not weaken its resolve. Al-Hayya, seen as a potential successor to Sinwar, said his death would only strengthen the group's determination to fight against Israeli occupation.

"The occupation prisoners will not return unless the aggression on Gaza stops, there is a complete withdrawal from Gaza, and our prisoners are released from Israeli prisons," al-Hayya said, as reported by Al Jazeera.

Hamas reiterated its long-term goal of establishing a Palestinian state with Jerusalem as its capital.

Israel’s Netanyahu said an “axis of terror” created by Iran is coming apart and called for unity among Middle Eastern nations to resist these forces and "build a future of light and hope" for the region.

Market Reactions: Israeli Stocks Up, Oil Prices Slide

The latest geopolitical developments in Middle East have produced a downward move in oil prices. On Friday, crude continued to decline, with the United States Oil Fund (NYSE:USO) dropping 1.5%.

This marks a weekly drop of over 8%, the worst performance for oil since January. The pullback in oil prices reflects investor sentiment that, despite ongoing tensions, fears of supply disruptions may be easing.

Israeli stocks extended recent gains, with the VanEck Israel ETF (NYSE:ISRA) rising 0.5%, pushing it to eight positive sessions in the last nine trading days.

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