Israel-Hamas War: Day 13 - Netanyahu's Long War Alert, Egypt Opens Aid Path To Gaza, Biden Considers $10B Support

Thirteen days have passed since the beginning of the war between Israel and Hamas, plunging the Middle East once again into geopolitical chaos.

Here are the latest developments of the past hours:

• Egypt has approved aid convoys entering Gaza through the Rafah border, addressing concerns over Israel’s blockade due to Hamas’ actions. Over 100 trucks waited on the Egyptian side, with aid deliveries expected to start on Friday.
  
• The European Union welcomed Israel’s commitment to allow some humanitarian aid into Gaza but stressed the need for a more extensive effort. European Commission spokesperson Balazs Ujvari commended Israel for not hindering essential supply deliveries from Egypt.
  
• Israeli Prime Minister Benjamin Netanyahu said his country is in a war against an “axis of evil” led by Iran, during a joint press conference with British Prime Minister Rishi Sunak. Netanyahu compared Hamas to the new Nazis, the new ISIS, and said it will be "a long war." Sunak reiterated support for Israel’s self-defense within international law.

"We will stand with your people and we also want you to win," Rishi Sunak tells Israeli PM Benjamin Netanyahu, as the UK prime minister starts a two-day tour of the region https://t.co/5AUFKd8XU8 pic.twitter.com/WWmQdlCYcC

— Bloomberg (@business) October 19, 2023

• President Joe Biden returned from his visit to Israel, affirming he was "very blunt" during meetings with Israeli leaders on Wednesday, and emphasizing their accountability for allowing humanitarian assistance to people displaced by the conflict.
  
• The Biden administration is contemplating a supplemental spending request to Congress, which may include $60 billion in assistance for Ukraine and $10 billion for Israel, according to a source briefed on the matter as of Wednesday, as reported by Reuters.
  
• On Wednesday, the U.S. vetoed a UN resolution seeking a humanitarian pause in the Israel-Hamas conflict, sparking protests by other nations. China expressed a deep disappointment by the United States' decision.
  
• Beijing wants the Israel-Hamas war to be stopped as soon as possible, President Xi Jingping was quoted by Chinese state media as saying on Thursday, adding that China was willing to work with Arab governments for a lasting solution to the conflict.
  
• Sheikh Hassan Yousef, a prominent Hamas spokesperson, was captured by Israeli forces in the Occupied West Bank, as reported by the Palestinian Prisoners Club.
  
• Chancellor Olaf Scholz reaffirmed Germany’s support for Israel and warned against the involvement of entities like Hezbollah and Iran.
  
• Hamas called for global mobilization on Friday to protest displacement and demand the right to return.

Market Reactions

The Israeli shekel continued its decline, dropping by 0.4% against the U.S. dollar on Thursday. This marks a total decline of over 5% since the start of the war with Hamas.

The Israeli stock market (TA-125 index), as monitored by the iShares MSCI Israel ETF EIS, fell 0.7%.

Gold, as represented by the SPDR Gold Trust GLD, has remained a favored safe-haven asset during this market phase. The precious metal saw a 0.4% increase on Thursday, surpassing $1,950 per ounce, and has appreciated by over 6% since the beginning of the war.

The U.S. dollar weakened, experiencing a 0.3% decline, while Treasury yields remained stable, with the 10-year yield holding at 4.93%.

Oil also fell, with the WTI benchmark down 0.7%, as the U.S. mulls sanction relief for Venezuela.

As of 09:00 a.m. ET, futures on the S&P 500 index were relatively unchanged.

All eyes are on Federal Reserve Chair Jerome Powell’s address scheduled for 12:00 p.m. ET today at the Economic Club of New York.

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