Over the weekend, Israel has seemingly begun a partial withdrawal from Southern Gaza. Reports suggest that Israel have withdrawed armored and infantry forces, but the size of the withdrawal is still unclear.
The withdrawal seems to be happing from the Khan Younis area in the south-west of Gaza. This has allowed Palestinian civilians to return to the area – many of them to destroyed homes.
The timing of the withdrawal is likely related to the increased external pressure from especially the US after a week of bloody battles in hospitals and the attack on a NGO aid convoy.
Israel claims that the withdrawing troops are preparing for a renewed offensive into Rafah, the last remaining town not under Israeli control in Gaza. However, it’s likely that the withdrawal is also a precaution against the expected Iranian retaliatory strike after last week’s bombing of the Iranian embassy in Damascus, Syria.
The next couple of days will be crucial as truce talks continue in Gaza and the whole region holds its breath awaiting a major Iranian strike against Israel.
Increasing tensions and attacks could lead to even higher surges in the oil price as well as disturbances to global equity markets – especially if disruptions to global shipping is continued or even worsened.