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Political Risk / Israel

Could 2006 Conflict Be Resumed?

August 2008 | Political Risk Alert

We continue to see an outside risk that Israel could once again attack neighbouring Lebanon, in an attempt to reduce the threat posed by Hizbullah. Recent signs suggest that hostility is rising between the two countries, particularly since Hizbullah saw its position strengthened via control of a veto-holding 11 seats in the cabinet. The new Beirut government has now apparently endorsed Hizbullah's right to continue its military activity against Israel, prompting Israeli Defence Minister Ehud Barak to say that in future any threat made by Hizbullah would be treated as an official Lebanese position. A source told Israeli newspaper Haaretz

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