The conflict in Gaza continues to escalate, with key developments at Al-Shifa Hospital and across the region, coupled with intensified international diplomatic engagements, as the Israel-Hamas war enters its 43rd day since the start of the hostilities.

Here are the latest developments:

Israeli military’s discovery at Al-Shifa: The Israeli military claims to have discovered a tunnel shaft within the Al-Shifa Hospital complex, which they allege is part of Hamas’s tunneling infrastructure. This assertion was supported by a video released by the Israeli Defense Forces (IDF).

Recovery of soldier’s body: On Friday, the IDF announced the retrieval of the body of Noa Marciano, a soldier previously held captive by Hamas in a building near the hospital. This follows the recovery of the body of Yehudit Weiss, a 65-year-old Israeli woman who was kidnapped by Hamas on Oct. 7.

International meetings: Turkish President Recep Tayyip Erdogan is set to discuss the Israel-Hamas conflict with German Chancellor Olaf Scholz in Berlin. This meeting is expected to cover the broader context of the European Union-Turkey migration deal, amid diverging views on the Gaza situation.

Market Reactions

The Israeli shekel (ILS) has gained 0.2%, reaching its highest level since mid-August.

Israel’s primary stock market index, the Tel Aviv 125, saw a 1.1% increase, fueling optimism for the performance of the iShares MSCI Israel ETF (NYSE:EIS) in Friday’s trading.

In U.S. markets, stocks started off weaker, with the SPDR S&P 500 ETF Trust (NYSE:SPY) dropping 0.2% and the tech-focused Invesco QQQ Trust (NASDAQ:QQQ) declining 0.4% minutes after the opening bell.

Treasury yields remained stable, while the U.S. dollar index (DXY) saw a slight decrease of 0.2%.

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