1:20 AM GMT – 02/07/2025
The Bank of Israel is expected to keep its benchmark interest rate at 4.5% next week, though analysts now believe a cut could come as early as August following Israel’s successful military campaign against Iran that has reduced geopolitical risks. Despite inflation slowing to 3.1% in May, it remains above the central bank’s 1-3% target, prompting most economists to predict the bank will maintain current rates while monitoring price stability. The economic landscape has shifted dramatically since the Iran conflict, with Israel’s shekel appreciating 8% against the dollar and the country’s risk premium dropping to its lowest level since March, creating conditions that economists say could justify rate cuts sooner than the previously expected timeline of late 2025 or 2026.
12:53 AM GMT – 02/07/2025
Switzerland has initiated proceedings to dissolve the Geneva branch of the US and Israeli-backed Gaza Humanitarian Foundation (GHF), citing legal shortcomings including failure to maintain proper board membership, a postal address, and a Swiss bank account. The controversial aid group, which began operating in Gaza in late May, has been criticized by the UN for its perceived lack of neutrality and has been linked to incidents where more than 500 Palestinians were killed near its distribution sites. GHF has confirmed it never conducted activities in Switzerland and intends to dissolve its Geneva-registered branch, while continuing operations through its US entity in Delaware where it claims to have delivered over 52 million meals to Palestinians in five weeks.
11:33 AM GMT – 02/07/2025
Iranian President Masoud Pezeshkian officially enacted a law on Wednesday suspending cooperation with the International Atomic Energy Agency (IAEA), following parliament’s approval last week amid rising tensions with the West. Under the new law, any future IAEA inspections of Iranian nuclear sites will require approval from Tehran’s Supreme National Security Council, severely restricting the UN watchdog’s oversight capabilities. Iran has accused the IAEA of siding with Western nations and providing justification for Israel’s recent air strikes, which began shortly after the agency’s board declared Iran in violation of its Nuclear Non-Proliferation Treaty obligations. Meanwhile, Foreign Minister Abbas Araqchi acknowledged in a CBS News interview that U.S. bombing had “seriously and heavily damaged” the key Fordow nuclear facility.
10:45 AM GMT – 02/07/2025
U.S. intelligence detected that Iran loaded naval mines onto vessels in the Persian Gulf last month after Israel’s June 13 strikes, raising serious concerns about a potential blockade of the Strait of Hormuz where one-fifth of global oil and gas shipments pass through. While the mines were not actually deployed in the strait, U.S. officials haven’t ruled out that this preparation might have been a strategic ruse to demonstrate Iran’s capabilities without intending to follow through on the threat. If Iran had closed this critical 21-mile wide waterway, it would have dramatically escalated the conflict and severely impacted global energy prices and commerce, though it would also have harmed Iran’s own export capabilities.
9:00 AM GMT – 02/07/2025
Israeli forces have intensified military operations across Gaza, with airstrikes killing at least 112 people in the past 24 hours, while Netanyahu’s confidant Ron Dermer has arrived in Washington for ceasefire talks ahead of the Prime Minister’s planned visit to meet with President Trump next week. Trump has urged Hamas to accept what he called a “final proposal” for a 60-day ceasefire that would include the release of hostages, stating that Israel has agreed to conditions that could lead to ending the war which has now lasted nearly 21 months. Hamas official Sami Abu Zuhri insists U.S. pressure on Israel is key to any breakthrough in stalled peace efforts, while the group maintains it will only release all remaining hostages as part of a deal that would fully end the conflict.
