Markets unmoved by Israel's Gaza offensive? BCA's Marko Papic tells us why

Group 1 - The Israeli ground offensives have historically not been effective in eliminating Hamas, which is viewed as a persistent ideology rather than just a militant group [2][3] - Domestic political considerations in Israel, particularly under Prime Minister Netanyahu, are influencing the continuation of ground offensives, regardless of their effectiveness [3] - There is currently no indication from major oil-producing countries in the region, such as Saudi Arabia and Iran, of an oil embargo against Israel, which diminishes the potential market impact of the ongoing conflict [4] Group 2 - The normalization of relations between Israel and Gulf states, as outlined in the Abraham Accords, appears to be stalled, with little expectation of significant diplomatic progress [6] - Recent military actions, such as the Israeli strike on Doha, have prompted Gulf leaders to convene for emergency discussions, but concrete collective responses remain unclear [5]