As mutual hostilities continue, reports suggest that Israel and Hezbollah (Lebanon) are nearing a ceasefire agreement that could be finalized in the coming days. 

Israel's security cabinet is set to convene later on Tuesday (today) to discuss a U.S.-brokered ceasefire proposal. According to Bloomberg, an unnamed Israeli official indicated that the agreement’s approval seems likely. 

Israel’s Ambassador to the U.S., Michael Herzog, stated in an interview with Israel Army Radio on Monday that while some final points still need to be addressed, they are close to an agreement that could be reached within a few days. 

If a ceasefire deal is agreed upon, it would serve as a significant catalyst for reducing geopolitical risks. This implies that safe-haven assets, particularly gold, could experience a decline. 

Similar predictions of an imminent agreement have been made in recent weeks by other American and Israeli officials. Although Hezbollah previously declared that it would not stop attacking Israel until a ceasefire in Gaza is reached, it has softened its stance following military losses. Still, whether Hezbollah will accept an agreement proposed by Israel remains uncertain. 

Israel's Two-Front Battle: Hezbollah in Lebanon and Hamas in Gaza 

Source: UNICEF 

Meanwhile, talks between Israel and Hamas (Palestine) regarding a ceasefire in Gaza have been stalled for months. While the conflicts are interconnected, a resolution in Lebanon is not expected to increase the likelihood of a ceasefire in Gaza. On the contrary, according to Al Jazeera, Israel seeks a ceasefire with Hezbollah to fully focus its efforts on the war in Gaza. 

Therefore, while a ceasefire between Israel and Hezbollah may provide some relief in terms of geopolitical tensions, it would not signify broader peace in the Middle East. 

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