Netanyahu Backs Cease-Fire Deal With Hezbollah, Israeli Hardliner Calls For 'Security Zone' Inside Lebanon

A cease-fire deal to end the fighting between Israel and the militant group Hezbollah in Lebanon is

What Happened: The short-term proposal is to pause hostilities for 60 days but with the intention of a lasting truce, according to CNN, which cited an Israeli official.

Prime Minister Benjamin Netanyahu offered three reasons for the cease fire, one being to shift focus to Iran, replenish Israeli troops and put greater pressure on Hamas to release the hostages that were captured on Oct. 7, 2023.

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Why It Matters: Not everyone is so confident the cease-fire will work.

Per the New York Times, Israel’s national security minister Itamar Ben-Gvir stressed the need for a "security zone" inside Lebanon to defend against Hezbollah. Otherwise, the two countries risk another war in the future, he said.

Ben-Gvir did not indicate that a cease-fire decision would cause him to leave Netanyahu's coalition.

Market Reactions

Oil prices, as tracked by the United States Oil Fund USO, were down 0.47% at last check Tuesday. Israeli stocks, as monitored through the VanEck Israel ETF USO are up 22.5% year-to-date.

Other oil ETFs were in the red at last check Tuesday afternoon.

ProShares Ultra Bloomberg Crude Oil UCO fell by 0.62%, SPDR S&P Oil & Gas Exploration & Production ETF XOP decreased by 0.94%, and MicroSectorsTM Oil & Gas Exploration & Production 3X Leveraged ETNs OILU saw a 0.84% drop, according to Benzinga Pro.

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