Key Takeaways
- Geopolitical tensions escalated significantly on Friday, December 26, 2025, as Israeli jets were reported flying above Lebanon's Bekaa region, following an air raid targeting the outskirts of Hermel in eastern Lebanon.
- The Israeli military confirmed launching attacks against Hezbollah, asserting that these operations targeted rocket-launching sites and "terrorist infrastructure," which it claims violate a U.S.- and French-brokered ceasefire agreement.
- In a separate market development, spot palladium prices surged by 7% on Friday, reaching a rate of $1,809.82 per ounce.
- The ongoing military actions in Lebanon occur amidst a looming deadline for Hezbollah's disarmament south of the Litani River, a key component of the ceasefire deal.
Escalating Tensions in Lebanon
Israeli military activity intensified over Lebanon on Friday, December 26, 2025, with reports of Israeli jets conducting flights above the Bekaa region in eastern Lebanon. This air activity coincided with an air raid that targeted the outskirts of Hermel, also in eastern Lebanon. The Israeli army confirmed these actions, stating they were part of ongoing attacks against the militant group Hezbollah.
These recent strikes follow a series of similar operations earlier in the week. On Wednesday, December 24, Israeli warplanes carried out multiple airstrikes in southern Lebanon, hitting areas such as Wadi al-Numairiyah and Wadi Houmine in the Nabatieh region. The Israeli military indicated these strikes targeted Hezbollah rocket-launching sites and other "terrorist infrastructure". A specific attack near Jannata in the Tyre district on Wednesday night reportedly targeted a vehicle, believed to be a Hezbollah terrorist, in what appeared to be a targeted assassination. Further strikes on Thursday, December 25, targeted a terrorist operative in Ansariyah, southwestern Lebanon, and another Hezbollah terrorist in Al-Jamijmah in Southern Lebanon.
Ceasefire Under Strain
The Israeli military has consistently stated that the presence of Hezbollah's rocket-launching sites and continued operations constitute a violation of the U.S.- and French-brokered ceasefire agreement. This agreement, which came into effect on November 27, 2024, aimed to halt months of cross-border clashes. Despite the truce, Israel has maintained that it will continue to act to remove any threats to its security and prevent Hezbollah from re-establishing its capabilities.
The recent surge in Israeli airstrikes, including those on December 18, which hit southern and northeastern Lebanon, occurred just ahead of a meeting of the committee monitoring the ceasefire's enforcement. Lebanese Parliamentary Speaker Nabih Berri reportedly viewed these earlier strikes as an "Israeli message" directed at a Paris conference focused on supporting the Lebanese army. Lebanon's Prime Minister Nawaf Salam stated on Saturday that the disarmament of Hezbollah south of the Litani River, a crucial demand of the ceasefire, was "only days away from completion".
Palladium Prices See Significant Rise
In a distinct market development, spot palladium prices experienced a notable surge on Friday, December 26, 2025. The precious metal's rate climbed by 7%, reaching $1,809.82 per ounce. This increase marks a significant movement in the commodity markets, with palladium often influenced by industrial demand, particularly in the automotive sector for catalytic converters, as well as broader economic and geopolitical factors. The precise drivers behind this sharp rise on Friday were not immediately detailed alongside the price report.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.