Israel-Lebanon Truce (US-led): Israel and Lebanon agreed to implement a conditional ceasefire after talks in Washington, with “complete cessation” of Hezbollah fire and the evacuation of Hezbollah operatives from southern Lebanon, plus “pilot zones” where the Lebanese army takes exclusive control of territory. Lebanon Escalation Risk: Hours after the announcement, Lebanon reported Israeli drone strikes in the south, underscoring how fragile the deal remains. Iran-US Pressure (Markets): Renewed Iran-US strikes around the Gulf—including attacks on Kuwait—kept investors in risk-off mode, lifted oil back near $97, and weighed on global equities. Defense Finance (IAI/Rafael): Israel Aerospace Industries and Rafael reportedly withheld government dividends to cover Defense Ministry debt exceeding NIS 10B, reflecting budget gaps tied to ongoing security demands. West Bank Settlement Push: Finance Minister Bezalel Smotrich advanced plans for 2,162 new settlement homes, intensifying international legal and diplomatic backlash. Tourism Signal: Israel’s tourism chief said Israel remains open and safe despite the war’s impact, arguing no tourists have been harmed in recent years. Forced-Labor Trade Rules: The US flagged Israel among countries failing to enforce forced-labor import bans under Section 301, raising compliance and trade friction risks. Israel’s Defense Exports: Israel set a record in 2025 with $19.2B in defense exports, up nearly 30%, despite boycotts and exclusion from some arms events.