The situation in the Middle East is on the verge of escalation, Iran-US cut off contacts, fears of war grow

The Middle East is once again entering an atmosphere of high tension, following recent developments related to the escalation of the situation in Lebanon and the cessation of diplomatic contacts between Iran and the United States of America for a possible peace agreement.

The situation has reportedly worsened following Israeli attacks in southern Lebanon, as part of an expanded Israeli military offensive following the IDF's capture of the medieval Beaufort fortress. Israeli Prime Minister Benjamin Netanyahu has declared that military operations will continue, also ordering strikes on the southern suburbs of Beirut.

In response to the developments, Iran announced the cessation of message exchanges with the US as part of diplomatic efforts for a possible agreement. Iranian state media reported that the possibility of the end of the ceasefire between Iran and the US is "high" if Israeli attacks on Lebanon do not stop.

In parallel, Iran has threatened to block the Strait of Hormuz and activate other fronts, including the Bab el-Mandab Strait, as part of what it calls "punishment" against Israel and its allies.

Geopolitical tensions have also had an immediate impact on international markets. Oil prices have risen significantly, while European stock markets have fallen. The Euro Stoxx 50 index fell by 0.64%, while the following declines were recorded in the main markets: Paris -0.79%, Frankfurt -0.80%, Milan -0.81% and London -0.87%.

In energy markets, Brent crude oil rose 6.60% to $97.13 a barrel, while West Texas Intermediate rose 7.62% to $94.02 a barrel.

Meanwhile, the United States Central Command (CENTCOM) announced that American forces have intercepted two Iranian ballistic missiles in Kuwait, which were suspected of targeting American troops deployed in the country. According to the official statement, no injuries were reported.

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