Israel Latest: Army Reserves Called Up, Chevron Shuts Gas Field

Israel plans to call up 300,000 reserve soldiers as battles with Hamas rage for a third day.

(Bloomberg) — Israel plans to call up 300,000 reserve soldiers as battles with Hamas rage for a third day.

The combined death toll topped 1,100 as the Gaza-based militants continue to fight in the south of Israel and fire rockets. Most of the dead are Israeli civilians.

Saturday’s surprise attack by Hamas, which included taking scores of hostages, is Israel’s worst intelligence failure in 50 years. Israel has pointed the finger at Iran, which has denied playing a role in the attacks. Chevron was told by Israel to shut down an offshore natural-gas platform, citing safety concerns. Oil rose and the conflict shook local markets, with the shekel dropping despite a huge support package from the central bank.

Hamas Attack Restores the Palestinian Question: Balance of Power

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Israel Tells Chevron to Shut Gas Platform (2 p.m.)

Chevron Corp. said it had been instructed by Israel’s Ministry of Energy to shut production at the Tamar natural-gas platform in the eastern Mediterranean. Supply will be maintained to customers in Israel and in the region from the Leviathan platform, Chevron said.

Israel Orders Shutdown of Key Gas Field as Violence Rages

European gas prices extended gains, rising as much as 12% on Monday.

Israel Halts Electricity, Fuel, Food, Water to Gaza (2 p.m.)

Defense minister Yoav Gallant says Israel’s cutting off electricity, fuel, and food supplies to the Gaza Strip.

“I have given an order – Gaza will be under complete closure. There will be no electricity, food or fuel.”

Israel’s energy and infrastructure minister adds water supply to the Hamas-run enclave will be cut off until the end of the military operation 

EU Holds Emergency Meeting on Israel (1 p.m.)

European Union foreign affairs chief Josep Borrell is convening the bloc’s 27 foreign ministers for an emergency meeting on Tuesday. They will “address the situation in Israel and in the region,” according Borrell’s post on social media platform X.

Israel to Call up 300,000 Reserve Soldiers (12:40 p.m.)

Israel’s army plans to call up 300,000 reserve soldiers to fight, according to the Israel Defense Forces. That’s its largest-ever call-up.

Israel Is Mobilizing 300,000 Reservists in Largest Ever Call-Up

Israel Concern Grips Emerging Markets (12:30 pm)

The possibility of conflict with Iran surged to the top of emerging-market investors’ concerns as they returned from the weekend to assess the fallout of another conflict between Israel and Hamas.

The outbreak of war in the Middle East has momentarily replaced Federal Reserve policy and China’s growth as the most immediate concern. The risk-off move on Monday morning was largely confined to Middle Eastern stocks and crowded currency trades in Mexico and eastern Europe, though, with losses across wider emerging markets more muted.

JPMorgan Tells Israel Staff to Work From Home (12.20 pm)

JPMorgan has told its staff in Israel to work from home for the foreseeable future.

JPMorgan Tells Its 200 Staff in Israel to Work from Home

The Wall Street bank has about 200 employees in the country, a person with knowledge of the work-from-home plan said, asking not to be be identified discussing internal matters. A spokesman for the firm declined to comment.

Airlines Suspend Flights (12:15 pm)

A growing number of international airlines suspended flights to Israel, with US authorities advising carriers to monitor the situation before resuming operations. 

Airlines Suspend Flights After Israel Declares State of War

US carriers including Delta Air Lines Inc., United Airlines Holdings Inc and American Airlines Group Inc. canceled their service to Tel Aviv, as did European airlines such as Deutsche Lufthansa AG and Air France-KLM, alongside budget specialist Wizz Air Holdings Plc from Hungary.

Citi Says Conflict in Israel to Come as ‘Stagflationary’ (12:06 pm)

Israel’s economic activity will be likely disrupted, presenting a negative supply shock, according to Citigroup strategists including Michel Nies.

“A wide-scale call up of reservists could further reduce labor supply in an already tight labor market,” they say. “At the same time, fiscal support would probably have to be stepped up, both for reconstruction and loss of income support as well as for strengthening security measures.”

Citi Says Conflict in Israel to Come as ‘Stagflationary Shock’

Citigroup doesn’t expect “further sustained bouts of shekel” weakness after the Bank of Israel announced plans to sell $30b in FX and offer $15b in swap mechanisms.

Germany Mulls Cutting Aid to Palestinians (12:05 pm)

Germany may cut the amount of aid it provides to the Palestinians as a result of the Hamas attacks, according to a person familiar with the discussion, who asked not to be identified.

Development Minister Svenja Schulze said in a statement Sunday that the government in Berlin is reassessing its entire aid program following the “terrible turning point” marked by the weekend’s events and is coordinating with international allies. Germany has currently committed about 250 million euros ($263 million) in development aid toward projects like water supply, waste disposal and healthcare but does not directly finance the Palestinian Authority, Schulze’s ministry said.

Xi to Meet Schumer, US Senators (12:00 p.m.)

Chinese President Xi Jinping will meet with a delegation of US senators in Beijing on Monday, according to state broadcaster CCTV.

Senate Majority Leader Chuck Schumer earlier in the day criticized Beijing’s response to Hamas’ incursion into Israel.

“I was very disappointed, to be honest, by the foreign ministry’s statement that showed no sympathy or support for Israel during these tough, troubled times,” Schumer said during a meeting with China’s top diplomat in Beijing on Monday. “I urge you and the Chinese people to stand with the Israeli people and condemn these cowardly and vicious attacks.”

Iran Says It Wasn’t Involved (11:15 am)

Iran rejected claims it was involved in Hamas attacks, the semi-official Iranian Students’ News Agency reported, citing Ali Karimi-Maqam, a member of Tehran’s delegation to the United Nations.

“We stand at Palestine’s side in firm support out of sympathy,” he said. “But we have no role in Palestine’s response, because it is done purely by Palestine itself.”

Shekel, Israeli Bonds Slide (10:58 am)

The shekel and Israel’s government bonds bore the brunt of the market impact from the attack by Hamas over the weekend, with scattered impact on emerging-market assets globally.

The shekel slid as much as 2%, only briefly paring the losses as the central bank stepped in to supply dollar liquidity. Israel’s and Lebanon’s dollar bonds declined the most among emerging markets, with Israel’s 2120 “century bond” dropping to a record low. Israel’s stocks gained after after posting their worst drop since March 2020 on Sunday.

Israel Fighting More Incursions From Gaza (9:00 a.m.)

Hundreds of Hamas militants are still trying to infiltrate southern Israel through breaches in the security fence, the Israeli army said.

Hostage situations inside Israel are continuing, in particular in one community, Israel Defense Forces spokesman Doron Spielman told Bloomberg Radio.

The reported Iranian role in plotting Saturday’s attacks is consistent with Iran’s funding for Palestinian militant groups and contacts between them, according to the IDF spokesman. “You can connect the dots,” he said.

More Than 123,500 Displaced in Gaza, UN Says (9:00 am)

A total of 123,538 Palestinians have been displaced in Gaza due to the violence, according to the United Nations Office for the Coordination of Humanitarian Affairs.

The UN estimates about 73,500 of that number are sheltering in schools, some of them designated emergency shelters. Airstrikes and shelling by Israeli forces have targeted houses and apartment buildings, OCHA said in an update. Four large residential towers in Gaza city were completely destroyed, with no fatalities reported from the incidents, it said.

The agency also reported six health-care workers were killed in strikes that also damaged seven health-care facilities.

Israel Still Fighting in ‘Volatile’ South (8:30 am)

The situation in the south of Israel remains volatile, Lieutenant Colonel Richard Hecht, an Israeli military spokesman, said Monday. Israeli forces have hit more than 1,000 targets in Gaza, including rocket launching sites, and four combat divisions have been mobilized. 

“We are still fighting,” he said. “There are seven to eight places near Gaza where we have warriors fighting terrorists. It is taking us more time than we expected.” Israeli forces have killed hundreds of Hamas fighters in Israel and Gaza, but the presence of hostages and missing civilians has forced the engagements to be more surgical and slower, he said. 

He said the arrival of the US fleet was not aimed at events in Gaza but at the risk of anti-Israel forces elsewhere, such as in Lebanon and Syria, from joining in.

–With assistance from Galit Altstein, Ethan Bronner, Alisa Odenheimer, Gwen Ackerman and Marissa Newman.

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