[MARKET UPDATE] Crude lifts off lows as recent reporting suggests the Israeli army has not withdrawn from specific areas in Lebanon, contrasting an earlier update from the US State Department

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Recent reports that the Israeli military did not withdraw from certain areas of Lebanon triggered a rebound in international oil prices from their lows. This reconfirms geopolitical tensions in the Middle East and highlights oil supply risks. In the short term, volatility in oil and futures markets is likely to increase, and there will be upward pressure on insurance premiums and shipping freight rates. Defense and energy-related sectors are likely to benefit, while airlines and the travel sector may face greater strain from higher fuel costs and weaker demand.

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