Ceasefire Could Impact Israel's Credit Rating

A ceasefire in the ongoing Gaza conflict is anticipated to positively impact Israel's credit rating, which is currently on a negative outlook due to the financial strain from the war. Fitch's head of sovereign ratings, James Longsdon, noted that stabilizing the situation could alleviate pressure on Israel's public finances, potentially leading to decreased defense spending and economic recovery. The ceasefire agreement, mediated by Qatar, Egypt, and the U.S., is set to take effect on Sunday, although Israel has reportedly intensified its strikes on Gaza since the announcement of the deal. The situation has already resulted in multiple downgrades of Israel's rating by major agencies over the past year. Additionally, Russia expressed hope that the ceasefire could pave the way for a comprehensive political settlement between Israel and the Palestinians, viewing it as a step towards long-term stability in the region.