Markets stay cautious despite Lebanon ceasefire

Global stocks fell on Thursday as investors treated the Israel Lebanon ceasefire agreement as a limited development rather than a turning point in the wider Middle East crisis.

Asian markets dropped, with South Korea’s market down as much as 2.6 percent and Japan’s Nikkei falling 1.4 percent. Wall Street also ended lower, with the S&P 500 down 0.7 percent, as investors weighed the ceasefire announcement against continuing hostilities involving the United States and Iran.

Oil prices eased after Israel and Lebanon agreed to implement the ceasefire, with Brent crude trading around $97.14 a barrel. But lower oil prices did not translate into broader confidence, as traders remained focused on the risk of disruption to energy flows, shipping routes and inflation.

The defensive mood was visible across asset classes. Gold rose 0.9 percent as investors moved toward safer assets. The dollar index was steady, while the yen strengthened slightly amid continued speculation over possible Japanese intervention. Bitcoin extended a five day decline, pressured by a stronger dollar, higher yields and weaker appetite for risk.

Political uncertainty in Washington added to the market unease. The US House of Representatives voted to curb President Donald Trump’s ability to continue military action against Iran without congressional approval, signalling growing domestic pressure over the war even if the measure does not immediately change US policy.

Technology stocks added a separate source of weakness. Broadcom shares fell more than 13 percent in extended trading after its second quarter revenue missed expectations and its chief executive kept a previous 2027 sales target unchanged.

Investors are now watching whether the Lebanon ceasefire holds, whether US Iran diplomacy advances, and whether the conflict continues to threaten global energy supply.