The shekel declines after Israel threatens to attack Lebanon Economy

The shekel (the Israeli local currency) fell 0.6% against the dollar to 3.71 shekels, today, Wednesday, after Prime Minister Benjamin Netanyahu said that Israel is ready to take “very strong action” against Lebanese Hezbollah.

This came during a tour by Netanyahu on the northern border with Lebanon, and he said that Israel is ready for strong action on the northern front.

Repeated targeting

Hezbollah repeatedly targets Israeli towns near the border – many of which have been evacuated – with missile and drone attacks, expanding the repercussions of Israel’s war on Gaza.

The rockets ignited huge forest fires this week, destroying large areas of land in northern Israel.

Netanyahu said, “Whoever thinks he can harm us and that we will stand idly by is making a grave mistake. We are ready to take very strong action in the north. One way or another we will restore security to the north.”

Israel and Hezbollah have been exchanging fire for 8 months, coinciding with the Gaza war, which has raised fears of the possibility of a broader conflict erupting between the two heavily armed rivals.

The ongoing hostilities between Israel and Hezbollah are considered the worst since the 2006 war between them, and have displaced tens of thousands of people on both sides of the border.