|

Israel signals direct talks with Lebanon on Hezbollah disarmament

Israeli Prime Minister Benjamin Netanyahu announced Thursday that he has ordered the start of direct negotiations with Lebanon "as soon as possible," with talks expected to center on disarming Hezbollah and establishing a formal peace between the two nations.

The development, first reported by Axios correspondent Barak Ravid on X, marks a notable shift in Israeli posture toward Lebanon. Direct bilateral negotiations between Jerusalem and Beirut would represent a departure from the indirect, mediator-dependent frameworks that have historically defined the relationship.

Hezbollah's disarmament has long been a non-starter for the Iran-backed group, which maintains a significant arsenal and political presence in Lebanon's government. Any negotiation framework that places disarmament at the center will face immediate resistance, not only from Hezbollah itself, but likely from Tehran, which views the group as a cornerstone of its regional influence.

However, the gap between announcing negotiations and achieving real-world results remains cavernous: Lebanon's fractured political system, Hezbollah's dual role as militia and political party, and Iran's interests all complicate the path forward. Whether this becomes a substantive diplomatic process or remains a headline will depend on what both sides are willing to put on the table.

Israeli Prime Minister Benjamin Netanyahu:

In light of Lebanon's repeated requests to open direct negotiations with Israel, I instructed the cabinet yesterday to start direct negotiations with Lebanon as soon as possible. The negotiations will focus on disarming Hezbollah and establishing peaceful relations between Israel and Lebanon.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

More from Joshua Gibson
Share:

Editor's Picks

AUD/USD sticks to neutral bias above 0.7100 amid cautious markets

AUD/USD holds steady above 0.7100 in the Asian session on Monday as the US Dollar stalls its modest pullback from the highest level since late July amid persistent geopolitical uncertainties. The PBOC status quo on Loan Prime Rates also weighs on the Aussie. However, bets on another RBA rate hike continue to underpin the Australian Dollar ahead of the Trump-Xi Summit.

USD/JPY eases below 157.00 amid looming intervention risks

USD/JPY is easing back below 157.00 in Asia on Monday, undermined by modest Japanese Yen strength amid looming intervention risks after Friday's BoJ rate check. A Japanese holiday also keeps traders on edge amid escalating geopolitical tensions between Russia and Ukraine and in the Middle East. As a result, the US Dollar pauses its pullback, limiting the pair's downside.

Gold feeling the heat as geopolitics is back in play

Gold snaps recent recovery from six-week lows on Monday after facing rejection at $4,400. US Dollar stalls correction amid renewed geopolitical jitters, ahead of the Trump-Xi meeting. Gold’s daily technical setup paints a mixed picture, with a neutral daily RSI.

Bitcoin, Ethereum and Ripple advance in uptrend

Bitcoin, Ethereum and Ripple extend their gains on Monday after posting strong gains of over 5%, 6% and 5%, respectively, last week. BTC trades above $81,300, ETH climbs above $2,600, and XRP holds above the key $1.300 support level. All three momentum indicators suggest early bullish momentum and hint at further gains ahead.

Houthis claim attacks on Saudi capital, thick smoke seen near Riyadh airport 
Yemen’s Houthis said that they attacked “sensitive” sites in the Saudi capital Riyadh with missiles and drones, hours after flames and a large plume of smoke were seen near the city’s main airport, the Guardian reported on Saturday. Saudi Arabia sent alerts overnight warning of potential danger around Riyadh.
BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.