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Israeli Defense Minister Israel Katz called for national unity in the face of Iranian threats and urged the formation of an emergency unity government. The statement signals a potential broadening of Israel's wartime political coalition amid heightened regional tensions with Tehran. The move matters for markets because a unified government could reduce political uncertainty around fiscal and security policy during the conflict. Investors should watch for formal coalition announcements and any resulting shifts in budget, defense spending, and bond risk premia.

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Israel, Israeli Defense Minister, Iran