Gold extends rally near $2,360 amid geopolitical risks
The price of gold (XAUUSD) rose to ,360 due to rising geopolitical tensions in the Middle East, boosting safe-haven flows.
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Israeli forces step up attacks on Gaza’s Jabalia camp, Rafah
Israeli tanks advanced into Jabalia in the northern Gaza Strip, while airstrikes targeted Rafah in the south. Tanks were trying to reach the heart of the camp, with tank shells and air strikes destroying houses. Israeli troops forced Palestinians in shelters to evacuate. In Rafah, heavy bombardments killed people, and the city remained a “ghost town”. Hamas fighters engaged in gun battles with Israeli forces in both areas. The death toll in Gaza has surpassed 35,000, causing a humanitarian crisis. The conflict began with a Hamas attack on southern Israel, resulting in casualties on both sides.
Banning UK arms exports to Israel would strengthen Hamas, UK’s Cameron says
David Cameron stated that stopping British arms sales to Israel if it launches a ground assault on Rafah in the Gaza Strip would strengthen Hamas. Israel ordered Palestinians to evacuate more of the southern city as it prepares for a ground attack, despite U.S. President Joe Biden’s threat to withhold weapons. Cameron believes that Britain should not support an operation in Rafah without a plan to protect civilians. He mentioned that less than 1% of Israel’s weapons come from Britain and are controlled by a strict licensing system. Cameron suggested that changing the approach to arms exports could strengthen Hamas and make a hostage deal less likely.
Israeli tanks encircle eastern half of Rafah
Israeli tanks captured the main road dividing the eastern and western halves of Rafah, encircling the entire eastern side of the city in the southern Gaza Strip. Residents reported intense fighting between Israeli forces and militants from Hamas and Islamic Jihad. Israel ordered civilians out of the eastern half of Rafah, forcing tens of thousands to seek shelter outside the city. Israel believes there are thousands of Hamas fighters in Rafah and cannot win the war without assaulting the city. The Israeli military located tunnel shafts in eastern Rafah and fought at close quarters with Hamas fighters. Ceasefire talks broke up with no agreement to halt the fighting. Over 34,000 Gazans have been killed in the seven months of war.
Who are Israel’s main weapons suppliers and who has halted exports?
The United States suspended a shipment of heavy, bunker-busting bombs to Israel amid concerns about their impact in dense urban settings like Rafah. Germany increased defense export approvals for Israel after an attack by Hamas, but has since approved fewer exports due to international criticism. Italy halted new export approvals to Israel since the start of the Gaza war, with the last orders delivered in November. Britain grants export licenses for defense equipment to Israel, while Canada stopped licensing arms exports to Israel to ensure compliance with humanitarian law. The Netherlands halted shipments of parts for F-35 jets to Israel due to concerns about violations of humanitarian law.
As Rafah offensive looms, Palestinians fear dispossession again
Israeli forces are massing on the outskirts of Rafah in Gaza, causing fear among Palestinians of another “Nakba” like the one in 1948. Many people in Rafah have been displaced multiple times as Israel continues to bombard Gaza. Mohammad Emad and his family have moved four times since October. The uncertainty and closed borders make finding refuge difficult. Israel disputes the claim that Palestinians were forced out in 1948. The ongoing conflict has resulted in casualties and destruction, with the United Nations warning of a humanitarian catastrophe if Israel continues incursions into Rafah.
Major Rafah offensive will not defeat Hamas, according to Biden
President Joe Biden believes that a major Rafah operation by Israel will not advance the country’s objective of defeating the Hamas Palestinian militant group in Gaza, according to the White House. Kirby, a spokesman, stated that there are better ways to go after Hamas’ leadership without putting civilians at significant risk. The current negotiations for a possible hostage-release deal in Cairo have ended without resolution, and Israel plans to proceed with its operation in Rafah. U.S.-Israel consultations are ongoing about alternatives to a major ground operation in Rafah, with hopes that Israel will choose not to proceed with the offensive.
Israeli forces mass on Rafah’s outskirts as US warns a major assault could halt arms
Israeli forces massed tanks near Rafah in response to U.S. President Biden’s threat to withhold weapons if a major invasion occurred. Ceasefire talks in Cairo continued as Palestinian militant groups engaged in battles with Israeli forces on the outskirts of Rafah. The U.S. paused delivery of bombs to Israel due to civilian risks, causing concern for Israel’s ability to neutralize Hamas. Thousands of Palestinians fled to Deir Al-Balah, fearing a humanitarian catastrophe in Rafah. Israel’s assault on Gaza has resulted in the deaths of thousands of Palestinians, with the U.N. warning of a looming humanitarian crisis.
Palestinians seek refuge ahead of Rafah offensive
Israeli forces are closing in on Rafah, a city in southern Gaza, where thousands of Hamas fighters are holed up. More than a million people are sheltering in the city, prompting warnings of a humanitarian catastrophe. Israel seized the main border crossing between Gaza and Egypt, cutting off aid. Residents have been ordered to leave as an assault is anticipated. Tens of thousands have fled the city, turning neighborhoods into ghost towns.
WTI edges up to $78.50 after Israeli strike on Rafah
– West Texas Intermediate (WTI) crude oil was up slightly and hovering around .50 a barrel in Asian trading on Tuesday following Israel’s strike on Rafah in Gaza.
– Israeli forces targeted Rafah on Gaza’s southern edge through air and ground attacks, leading to concerns about potential disruptions in crude supplies from the region.
– Hamas accepted a ceasefire proposal from mediators, but Israel rejected the terms.
– Analyst forecasts suggested that crude oil and product stockpiles in the United States were anticipated to have declined last week.
– US President Joe Biden’s energy adviser stated that the US has ample oil supply in the Strategic Petroleum Reserve (SPR) to address any supply-related worries.
– The SPR remains close to 40-year lows despite the largest-ever sale of 180 million barrels following Russia’s invasion of Ukraine.
– The Biden administration has halted the repurchase of oil for the reserve due to crude trading above the targeted price of .00 per barrel.