Israel launched its heaviest bombardment of Lebanon since the conflict began, conducting more than 100 airstrikes in just 10 minutes despite a U.S.-brokered cease-fire with Iran. Prime Minister Benjamin Netanyahu explicitly excluded Lebanon from the truce, with attacks killing at least 112 people and wounding 840 others. The escalation sent regional markets into uncertainty as investors assessed potential spillover effects.

Diplomatic confusion surrounded the cease-fire scope, with conflicting statements from Pakistani mediators claiming Lebanon was included while Netanyahu firmly rejected that position. The White House confirmed Lebanon's exclusion, creating diplomatic friction with Iran. Regional business leaders expressed concerns about supply chain disruptions as the conflict threatens to expand beyond Iran's borders.

Energy markets reacted to the heightened tensions, with Brent crude futures rising 2.3% on concerns about potential disruptions to Gulf shipping lanes. The conflict compounds Lebanon's already fragile economic situation, with inflation expected to accelerate beyond the current 287% annual rate as reconstruction costs mount.