According to Lebanon's Al Jadeed TV, Israeli forces have withdrawn from towns in southern Lebanon.

On the 3rd, U.S. Secretary of State Rubio told a Senate Appropriations subcommittee that negotiations between Russia and Ukraine have stalled in recent months and carry a real risk of escalation. He said the conflict cannot be resolved by military means and must be settled diplomatically, but that route has not produced results to date. Both sides appear unwilling to make the concessions required for a deal, he said. Russia retains long-range strike capabilities and Ukraine can retaliate in kind, making the risk of escalation real and more tangible than two years ago.

Asian authorities are intensifying FX defense as high energy costs and Fed rate‑hike expectations pressure local currencies. South Korea vowed on Thursday to curb excessive volatility after the won slid toward its weakest since 2009. Bank Indonesia said it is stepping up intervention to stabilise the rupiah, which has fallen to historic lows. Sources say the Bank of Japan is prepared to consider a 25bp rate rise this month. In India, with the rupee near record lows, the government plans tax cuts and removal of some limits on bond holdings to attract inflows. BNY Mellon’s APAC senior markets strategist Wee Khoon Chong said a strong dollar, high oil and capital outflows have left regional central banks and authorities on high alert.