Hamas Relents On Israeli Troops In Gaza, Paves Way For Potential Hostage Release

At least one aspect of Israel’s multifront war is expected to come to an end if the militant group Hamas comes to ceasefire terms with Israel.

What Happened: So far, Hamas has yielded at least two of Israel's demands for a cease-fire agreement in Gaza, according to a Thursday Wall Street Journal report.

The development comes after previous negotiations collapsed. And, just three months ago, certain senior U.S. officials were skeptical that a hostage-release deal would occur before the end of President Joe Biden‘s term.

The scenario has changed drastically.

U.S. National Security Adviser Jake Sullivan spoke to the press in Tel Aviv Thursday after meeting with Prime Minister Benjamin Netanyahu in Israel.

“Hamas started this war,” Sullivan said, optimistic that a ceasefire and hostage release “can happen.”

See below.

Sullivan said he is set to visit Doha, Qatar and Cairo to close a deal “this month.”

Hamas is reportedly willing to allow Israeli forces to stay in Gaza temporarily when the fighting stops, the WSJ reported. A list of hostages, including U.S. citizens, is expected to be released as part of a ceasefire pact.

Whether the ceasefire would last or be fully enforced remains to be seen.

Israel and Hezbollah were expected to pause fighting in Lebanon last month, but attacks continued into December. At least five people were killed in Israeli attacks on southern Lebanon in the last 24 hours, per Al Jazeera, citing the country's Health Ministry.

Hezbollah began firing rockets toward Israel after Hamas attacked Israel on Oct. 7, 2023.

Why It Matters: The ceasefire agreement would come as the balance of power in the Middle East changes.

This week, Israel seized the buffer zone as Bashar al-Assad‘s rule in Syria collapsed. Al-Assad and his family were subsequently granted asylum by Russia.

Assad’s regime was considered a lifeline to Hezbollah.

Traders can gain exposure to oil stocks that are affected by Middle East geopolitcal news via ETFs, or exchange-traded funds. According to Benzinga Pro:

• ProShares Ultra Bloomberg Crude Oil UCO is up 0.27% Thursday.
• United States Oil Fund LP USO dropped 0.16%.
• SPDR S&P Oil & Gas Exploration & Production ETF XOP decreased by 0.79%.
• MicroSectorsTM Oil & Gas Exploration & Production 3X Leveraged ETNs OILU saw a 2.39% drop.

Israeli stocks, as monitored through the VanEck Israel ETF ISRA, are up 25.34% year-to-date.

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