Markets Unmoved by Trump's Controversial Gaza Announcement

Israel's shekel held steady against the dollar, despite U.S. President Trump suggesting a takeover of Gaza. Meanwhile, Israeli bonds remained steady, and Lebanon's defaulted bonds rallied. Experts say investors are cautious due to uncertainties about the implementation of Trump's comments and regional geopolitical implications.

The Israeli shekel remained largely stable against the dollar on Wednesday, following U.S. President Donald Trump's provocative proposition of taking control over the Gaza Strip. By 0950 GMT, the shekel was trading at 3.56 to the dollar, registering a 0.1% rise from Tuesday's closure.

Israeli and Lebanese sovereign bonds showed flat to upward movements, contrasting with the flat to downward trend of Jordanian and Egyptian bonds. Market analysts expressed skepticism towards Trump's declaration, viewing the potential deployment of U.S. troops as a significant geopolitical risk factor.

Lebanon's dollar bonds, which defaulted last year, saw a remarkable 100% return on the back of Hezbollah's diminishing power and political developments. Despite Trump's disruptive announcements, investor and market reactions remain subdued due to the considerable gap between rhetoric and feasible execution.