Israel Rejects US-Brokered Ceasefire Deal Amid Ongoing Gaza Conflict

Israeli airstrikes on August 2 killed at least 15 to 17 Palestinians in Gaza as Israel's National Security Minister, Itamar Ben-Gvir, rejected a US-backed ceasefire deal. The strikes hit residential areas in Gaza City, Deir al-Balah, and Khan Younis, with the cumulative Palestinian deaths since October 2025 surpassing 1,230.

The draft peace agreement, brokered by the US, aimed to disarm Hamas and facilitate a gradual Israeli withdrawal from Gaza. However, Ben-Gvir deemed the deal 'unacceptable', citing its core elements of disarming Hamas and phased Israeli withdrawal.

Geopolitical instability in the Middle East has historically influenced energy prices, which can ripple through inflation expectations and central bank policy, affecting risk assets including crypto. The rejected ceasefire deal also introduces a secondary risk: prolonged US diplomatic distraction, potentially reducing bandwidth for crypto regulation and legislation.