Tensions Escalate As US Kills Militant & Israel Rejects Ceasefire

There was no reprieve in tensions in the Middle East on Wednesday. US strikes continued and Israel turned down Hamas’ demands for ceasefire. This supported oil prices with crude rising around a percent and shipping costs sharply higher with contracts coming up for renewal next month.

• The US, Qatar and Egypt have been working on a ceasefire deal between Israel and Hamas. After considering it Hamas presented its terms, which Israel rejected with PM Netanyahu calling them “bizarre”. He said that “there is no other solution but a complete and final victory”, but despite this talks are scheduled to continue today in Cairo. The US will want a deal given growing pressure at home.
• Far from a ceasefire, Netanyahu said that forces are preparing to move into Rafah in southern Gaza.
• The BBC is reporting that the US struck a vehicle in Baghdad killing a leader of Kataib Hezbollah who is believed to be responsible for the attacks on US troops which killed three soldiers. The organisation has said that it will suspend attacks on the US to avoid “embarrassment” to the Iraqi government. The US has about 2500 troops in Iraq.
• The US has said it will continue to strike rebel groups and Houthi militants but wants to avoid its wider involvement in the region and an escalation of an already tense situation.
• Houthis targeted two more ships in the southern Red Sea on Wednesday. More and more shipping is avoiding the area resulting in a 156% increase in container rates this year.