Israel sent more forces into Gaza، as concern increased over the humanitarian situation in the strip. Troops also raided a West Bank city and conducted an airstrike in Syria.

Authorities in Hamas-run Gaza said the death toll since the war erupted had surpassed 8،000، while US President Joe Biden and his Egyptian counterpart agreed Palestinians shouldn’t be displaced to Egypt. 

Israeli Prime Minister Benjamin Netanyahu is facing increasing criticism over his unwillingness to accept any responsibility for security lapses leading up to and during Hamas’s attack on Oct. 7. In markets، the shekel gained for a second day and gold fell slightly as Israel’s ground incursion appeared less extensive than some investors expected. 

The Israeli currency extended gains against the US dollar for the biggest daily rise since Sept. 11. The country’s benchmark stock index rallied for a second day، driven by a 2.6% surge in Mizrahi Tefahot Bank Ltd. 

Discussing Gaza's future

The markets viewed Israel’s invasion as a more gradual approach than what the country had vowed in the days after Hamas’s attack. “Investors are evidently worried، but regional markets appear to be pricing in a relatively contained situation،” said Emre Akcakmak، portfolio manager at Dubai-based East Capital International AB.

US and Israeli officials are discussing Gaza’s future، including an interim government backed by the UN and with the involvement of Arab states. But Palestinian Prime Minister Mohammad Shtayyeh told the Guardian newspaper that his authority will not return to govern the strip without a comprehensive agreement that includes the West Bank in a Palestinian state.

“To have the Palestinian Authority go to Gaza and run the affairs of Gaza without a political solution for the West Bank، as if this Palestinian Authority is going aboard an F-16 or an Israeli tank?” Shtayyeh said. “I don’t accept it. Our president doesn’t accept it. None of us will accept it.”

Authorities in Hamas-run Gaza said Israeli attacks have killed 8،306 Palestinians since Oct. 7. A spokesman for Gaza’s Health Ministry، Ashraf Al-Qudra، added that over 21،000 people have been injured.

Save the Children on Sunday said that 3،195 children had been killed in Gaza in just three weeks، exceeding the annual number across the world’s conflict zones since 2019. It urged an immediate cease-fire.

Prices climbed after Egypt said Sunday its imports of natural gas are now zero. The North African nation normally exports Israeli gas as well as its own via two liquefied natural gas plants. High domestic consumption in the summer halted shipments.

Geopolitical upheaval

European gas futures surged as much as 7.1% on Monday before paring some of the gains. Prices are about 30% higher than they were before the war erupted three weeks ago، underscoring the continued vulnerability of Europe’s market to geopolitical upheaval after last year’s energy crisis triggered by Russia’s invasion of Ukraine.

More Israeli forces have entered Gaza، with the invasion advancing gradually and according to plan، spokesman Daniel Hagari said. He said 239 people were now thought to be held by Hamas، which is designated a terrorist group by the US، UK and European Union. 

Iran’s foreign ministry said Hamas has pledged to release non-Israeli hostages “in the shortest time possible.”

“Hamas officials have made a promise on releasing the citizens of third countries،” ministry spokesman Nasser Kanaani told reporters in Tehran on Monday. “But they insist that it’s not possible to separate civilians from non-civilians under Israel’s continuous bombings.”

The Israel Defense Forces said in a statement that troops killed dozens of militants who barricaded themselves in buildings and tunnels. It also said it had struck more than 600 targets in Gaza in recent days، including weapons depots and missile launch sites. It did not say if IDF troops had suffered any causalities.

The Israeli military raided Jenin، a city in the West Bank، and clashed with armed militants، Palestine TV reported. Broadcast footage showed ongoing fighting. The local health ministry said four Palestinians were killed، increasing the death toll in the West Bank since Oct. 7 to 122.