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Iran-US deal fails to halt Hezbollah-Israel clashes, heightening Middle East market risk

Executive summary: Violent clashes between Israel and Hezbollah continue in Lebanon despite a U.S.–Iran agreement purported to reduce regional tensions. The continuation of hostilities increases geopolitical risk, threatens oil supply routes, and could affect financial markets and regulatory scrutiny.

Who is involved: Israel, Hezbollah, the United States, Iran, and the Lebanese government.

Likely next: Further tit-for-tat strikes, possible diplomatic escalation, and heightened market volatility in the short term.

The latest report shows that despite a provisional U.S.–Iran agreement, Israeli strikes continue against Hezbollah in Lebanon, indicating the deal has not produced a ceasefire. The violence persists amid broader regional rivalry, raising concerns for regional stability and investor exposure. Key actors include Israel, the Hezbollah militia, the United States, and Iran, with diplomatic pathways still uncertain.

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