Tensions between Iran and Israel are high following the assassination of Hamas leader Ismail Haniyeh in Tehran, with Iran vowing a severe response. However, senior Iranian officials have indicated that only a ceasefire deal in Gaza could prevent direct retaliation from Iran. Talks are set to begin this week in hopes of reaching a ceasefire agreement.
The US has deployed warships to the region to bolster Israeli defenses, and there are concerns about the potential for a broader conflict in the Middle East. Iranian officials have engaged in intense dialogue with Western countries and the US to discuss how to calibrate their response to the situation.
Iran is considering sending a representative to the ceasefire talks, which would mark a significant step for the country. The hope is that a ceasefire in Gaza would provide cover for a smaller, symbolic response from Iran. The US and other regional governments are working to avoid escalation ahead of the talks.
In the midst of these tensions, Israel’s economic rating was downgraded by Fitch Ratings due to the ongoing conflict in Gaza. Israeli military strikes in Gaza have caused numerous casualties, including women and children. Israel maintains that it takes measures to avoid harming civilians and blames Hamas for operating in residential areas.
The situation remains tense, with the hope that ceasefire talks in Gaza can help temper retaliation from Iran and prevent further escalation in the region.
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