Germany adds to chorus of countries advising citizens leave Lebanon

<p>I don't like speculating about politics and war but that's about a dozen countries now that have advised citizens to leave Lebanon. Skirmishes along the Israel-Lebanon are continuing and I strongly suspect that all the western countries offering up this advice believe Israel and Lebanon aren't headed for a protracted period of peace.</p><p>Does it matter for markets?</p><p>In a vacuum, no, but dominoes are falling and the one that really matters is Iran.</p><p>If there is a conflict between Israel and Lebanon, markets will be watching to see how far into the country it extends. This message — just out from Israel finance minister Smotrich is ominous:</p><blockquote>We currently have only one mandate — to completely destroy Hamas and the terrorist organization in Gaza and remove the threat to Israel and its citizens from Gaza, as well as from other borders. </blockquote><p>Oil and bonds will be the initial spot to watch. Remember it was a bid in bonds last Monday that led to a rally in equities after the initial terrorist attacks.</p>

This article was written by Adam Button at www.forexlive.com.