Israel and Syria resume U.S.-brokered talks in Paris

December 31, 2026 jumps to 13%6%

Israeli and Syrian officials met in Paris for a second round of U.S.-mediated negotiations, issuing a joint statement emphasizing respect for Syria's sovereignty and Israel's security, which modestly improved market expectations for a December 2026 diplomatic breakthrough.

Israeli‑Syrian diplomatic talks stall after security flare‑up

June 30, 2026 dips to 2%3%

Following the Paris meeting, reports emerged that a renewed Hezbollah‑linked attack in Damascus led both sides to suspend further negotiations, sending the market sharply lower as the prospect of a formal agreement dimmed.

Israel turns away ship with stolen Ukrainian grain amid diplomatic row

June 30, 2026 dips to 3%3%

Israel rejected a shipment of grain stolen from Russian-occupied Ukrainian territories, responding to Ukrainian diplomatic pressure. While unrelated directly to Israel-Syria relations, this event reflected Israel's complex regional diplomacy and its balancing act amid multiple conflicts, contributing to cautious market sentiment on normalization prospects.

Israel and Syria resume U.S.-brokered talks in Paris on security agreement

December 31, 2026 dips to 14%3%

Syrian and Israeli officials met in Paris for U.S.-mediated talks aimed at a security agreement to reduce tensions. They agreed to establish a joint communication cell for coordination on intelligence, military de-escalation, and diplomatic engagement, marking a tentative step but no formal normalization yet.

Israel rejects allegations over ship with stolen Ukrainian grain amid diplomatic row with Kyiv

Israel faced diplomatic tensions with Ukraine over ships carrying stolen Ukrainian grain docking at Israeli ports. This incident strained Israel's international relations and distracted from regional diplomatic efforts, including with Syria, contributing to market skepticism about normalization prospects.

Israeli Foreign Minister rejects Ukrainian allegations over stolen grain ship

December 31, 2026 dips to 14%2%

Tensions between Israel and Ukraine rose over allegations of stolen Ukrainian grain being unloaded in Israel. While unrelated directly to Israel-Syria relations, this incident reflects Israel's complex regional diplomatic challenges, contributing to a cautious market outlook on normalization prospects.

Syria’s President Ahmed al-Sharaa declares support for disarming Hezbollah

December 31, 2026 dips to 14%3%

Syrian President Ahmed al-Sharaa publicly supported Lebanon's efforts to disarm Hezbollah, marking a shift from previous Syrian support for the group. This convergence of interests with Israel against Hezbollah suggested potential for cooperation but did not translate into normalization, reflecting ongoing tensions and stalled efforts.

U.S.-mediated Israel‑Syria talks resume in Paris

December 31, 2026 rises to 14%3%

AP reported that Israeli and Syrian delegations met in Paris to restart security talks, prompting a short rally in the market as traders priced in a possible path to formal relations.

EU leaders visit Syria and pledge €620 million aid

December 31, 2026 dips to 13%1%

European Commission President Ursula von der Leyen and Council President António Costa met Syrian interim President Ahmad al‑Sharaa, signaling Syria’s growing international acceptance and indirectly supporting a regional diplomatic thaw that nudged the December‑31 price slightly higher.

Syria’s interim president calls for ceasefire amid renewed clashes

June 30, 2026 dips to 5%4%

Following renewed fighting between Syrian forces and Kurdish fighters, President al‑Sharaa announced a ceasefire, underscoring internal security challenges and reducing the likelihood of a swift diplomatic opening with Israel, nudging the market lower.

U.S. mediates second round of Israel-Lebanon talks on Hezbollah cease-fire

The U.S. hosted a second round of talks between Israel and Lebanon aimed at extending a cease-fire and launching negotiations for peace. While not directly involving Syria, these talks influenced regional dynamics and underscored the complexity of achieving broader normalization including with Syria, as Hezbollah opposed agreements.

Second round of U.S.-mediated Israel-Lebanon talks on cease-fire extension

December 31, 2026 drops to 14%7%

The U.S. hosted a second round of talks between Israel and Lebanon aimed at extending a cease-fire with Hezbollah. Continued conflict and Hezbollah's opposition to agreements underscored the fragile regional security environment, indirectly dampening prospects for Israel-Syria normalization.

Syrian foreign minister hints at possible normalization with Israel

December 31, 2026 dips to 11%3%

In a televised interview, Syria’s Foreign Minister Asaad al‑Shaibani suggested that talks on normalising relations with Israel were under consideration, briefly lifting market odds before the optimism faded amid no concrete steps.

Israel-Lebanon talks highlight challenges for regional peace amid ongoing conflict

Analysis of Israel-Lebanon talks emphasized the political and military challenges Israel faces, including its occupation of southern Lebanon and targeting beyond Hezbollah. This situation reflects the broader regional instability that hinders progress on Israel-Syria normalization.

Syria says it foiled Hezbollah sabotage plot in Quneitra

December 31, 2026 dips to 14%2%

Syria’s Interior Ministry announced the disruption of a Hezbollah‑linked cell planning a rocket attack from a disguised civilian vehicle. The incident highlighted ongoing security friction between Damascus and Jerusalem, pushing the market lower as analysts saw little progress toward diplomatic ties.

Israel and Lebanon hold second round of U.S.-mediated talks to extend ceasefire

The U.S. hosted a second round of ambassador-level talks between Israel and Lebanon to extend a ceasefire and discuss broader peace negotiations. Hezbollah opposed the talks, underscoring ongoing regional tensions that complicate broader normalization efforts including with Syria.

U.S. brokers first direct diplomatic talks between Israel and Lebanon

December 31, 2026 drops to 19%9%

The United States facilitated the first direct diplomatic talks in decades between Israel and Lebanon, a neighboring country involved in regional conflicts. While this was a significant diplomatic step, it did not involve Syria and did not result in normalization between Israel and Syria, contributing to market skepticism.

Israel clears final hurdle for controversial West Bank settlement project

June 30, 2026 drops to 2%6%

The Israeli government approved the tender for the E1 settlement project near Jerusalem, a move seen as contrary to peace‑building and likely to sour any normalization talks with Syria, causing the June‑30 outcome price to plunge.

Israel and Syria resume U.S.-brokered talks in Paris

December 31, 2026 dips to 14%2%

Israeli and Syrian officials met in Paris for U.S.-mediated talks on a security agreement, agreeing to set up a joint communication cell. The breakthrough raised hopes of formal diplomatic ties, pushing the market up modestly.

Israel approves $35 billion gas export deal with Egypt

December 31, 2026 drops to 10%5%

Prime Minister Benjamin Netanyahu announced a historic gas deal with Egypt, improving Israel’s regional economic ties and shifting diplomatic focus toward energy cooperation rather than a peace pact with Syria, contributing to further price declines.

Israel and Lebanon begin first direct diplomatic talks in decades in Washington

Lebanon and Israel held their first direct talks in decades, mediated by the U.S., aiming to address ceasefire and peace issues amid ongoing conflict with Hezbollah. This development highlighted regional diplomatic efforts but did not directly advance Israel-Syria normalization, reflecting the complex regional environment.

Israel and Syria resume U.S.-brokered talks in Paris

December 31, 2026 rises to 17%1%

Syrian and Israeli officials met in Paris for U.S.-mediated talks aimed at a security agreement to reduce tensions, agreeing to establish a joint communication cell for coordination. However, Syria prioritized Israeli withdrawal to pre-December 2024 lines, while Israel emphasized security and protection of its citizens and the Druze minority. This indicated progress in dialogue but no formal diplomatic normalization.

Israel clears final hurdle for controversial West Bank settlement project near Jerusalem

December 31, 2026 dips to 11%3%

The Israeli government approved a tender for the E1 settlement project, reviving a long‑frozen plan and raising concerns that settlement expansion would hinder any diplomatic breakthrough with Syria, causing the market to fall.

No official Israel-Syria normalization announcement as talks remain inconclusive

By late March 2026, no official announcement of diplomatic relations establishment occurred despite ongoing talks and U.S. mediation, leading to market prices dropping to historic lows for both June and December 2026 outcomes.

Israel and Syria resume U.S.-brokered talks in Paris

December 31, 2026 drops to 15%5%

Israeli and Syrian officials met in Paris for the first time since the 2024 regime change, agreeing to set up a joint communication cell. The limited scope of the talks and lack of concrete steps lowered market optimism for a full diplomatic breakthrough.

EU leaders visit Syria, pledge €620 million aid

December 31, 2026 dips to 20%2%

European Commission President Ursula von der Leyen and Council President António Costa met interim President Ahmad al‑Sharaa in Damascus, announcing a major aid package. The visit highlighted Syria’s growing openness to the West, shifting attention away from Israel‑Syria normalization and pulling the market down.

Syrian Foreign Minister reports stalled efforts to normalize with Israel

December 31, 2026 drops to 14%10%

Syrian Foreign Minister Asaad al-Shaibani stated that efforts to bridge gaps with Israel have stalled, reflecting deep mistrust and ongoing military tensions, which contributed to the market's sharp decline in normalization probability.

Syrian President Ahmed al-Sharaa publicly supports disarming Hezbollah, signaling potential cooperation with Israel

June 30, 2026 dips to 6%2%

Al-Sharaa declared support for Lebanon's effort to disarm Hezbollah, a common adversary of Israel and Syria. This indicated a rare convergence of interests but did not translate into cooperation, maintaining market skepticism about normalization by June 30, 2026.

Israel and Syria resume U.S.-brokered talks in Paris, agree to joint communication cell

December 31, 2026 jumps to 23%9%

Israeli and Syrian officials met in Paris and issued a joint statement establishing a communication cell to coordinate intelligence, de‑escalation and commercial opportunities, signalling a concrete step toward normalisation and pushing the market higher.

Syria’s interim president announces ceasefire with Kurdish forces in Aleppo

The ceasefire announcement was intended to stabilize northern Syria but did not involve Israel, leaving the broader Israel‑Syria normalization question unchanged and contributing to continued price weakness.

Hezbollah‑Israel border clashes raise security concerns, dampening normalization hopes

June 30, 2026 dips to 6%4%

Following renewed Hezbollah rocket fire and Israeli retaliation reported on Feb 13 2026, regional security tensions rose, reducing confidence in any near‑term Israel‑Syria diplomatic breakthrough and driving both market prices to their lowest points.

EU leaders pledge support for Syria’s recovery post-civil war

December 31, 2026 drops to 11%11%

European Union officials visited Syria and pledged financial aid for reconstruction, signaling Syria’s improving relations with the West but not directly with Israel. This nuanced development did not significantly boost market expectations for Israel-Syria normalization by the end of 2026.

Israel’s far‑right government expands settlement policy

December 31, 2026 dips to 15%4%

Further settlement expansion announcements by Israel’s far‑right coalition signaled a continued focus on territorial issues rather than diplomatic outreach to Syria, pushing prices lower.

U.S.‑brokered Israel‑Syria talks in Paris fail to produce agreement

December 31, 2026 drops to 11%10%

AP reported on Feb 11 2026 that Israeli and Syrian officials met in Paris under U.S. mediation but left without a concrete security accord, reinforcing market pessimism and coinciding with the steep price decline from 21 % to 11 % for the December‑31 outcome.

Analysis questions effectiveness of U.S. military aid in fostering Israeli peace concessions

December 31, 2026 drops to 10%11%

A critical analysis highlighted that despite Israel's military edge and U.S. support, there is no Israeli intent to make concessions, reducing the likelihood of normalization with Syria or other neighbors in the near term.

U.S. military aid to Israel escalates but no Israeli concessions on Syria normalization

December 31, 2026 drops to 21%5%

U.S. military support to Israel increased, reinforcing Israel's military edge. However, Israel showed no intent to make political concessions in Syria, continuing military operations and occupation, which reduced market confidence in normalization prospects.

Limited travel through Rafah crossing resumes under EU supervision

June 30, 2026 dips to 10%2%

The partial reopening of the Rafah crossing indicated some humanitarian easing but did not translate into diplomatic normalization between Israel and Syria, maintaining low market confidence in normalization by mid-2026.

Israeli military intensifies operations in Gaza amid ongoing conflict

December 31, 2026 drops to 11%13%

Israel's focus on military operations and settlement expansion signaled a hardening stance, reducing optimism for diplomatic breakthroughs with Syria. This contributed to a further decline in market prices for normalization by December 31, 2026.

EU leaders visit Syria, pledge support and lift sanctions

June 30, 2026 dips to 18%4%

AP reported on Jan 5 2026 that EU officials met interim President Ahmad al‑Sharaa, announced €620 million aid and lifted sanctions, signalling improved ties with the West but no direct Israel‑Syria breakthrough, which kept market sentiment low.

EU delegation highlights Syria’s reconstruction, not Israel ties

June 30, 2026 drops to 12%10%

During the EU visit, officials focused on reconstruction aid and a ceasefire with Kurdish forces, offering no progress on Israel‑Syria diplomatic normalization, reinforcing market pessimism.

Delcy Rodríguez sworn in as Venezuela's interim president

While not directly related to Israel-Syria relations, this event reflects broader regional political shifts and instability that may indirectly affect Middle East diplomacy. Market impact on Israel-Syria normalization was minimal but noted for context.

Analysis warns of grim outlook for Middle East peace including stalled Israel-Syria normalization

December 31, 2026 drops to 31%5%

Despite earlier optimism, regional politics and recalcitrance of players like Israel and Syria have collided with peace efforts. Israel continues military actions in Syria and occupies territory, while Syria faces internal challenges. This reality dampened market optimism further, pushing prices down.

Israeli military actions and regional tensions keep normalization prospects low

June 30, 2026 drops to 22%14%

Despite a new Syrian regime and some diplomatic overtures, Israel's ongoing military strikes in Syria and Lebanon, and its policies in Gaza and the West Bank, sustained deep mistrust and diminished hopes for normalization with Syria by mid-2026.

Optimism fades as regional realities stall Israel-Syria progress

December 31, 2026 drops to 20%6%

Despite earlier hopes, Israeli military actions in Syria and ongoing distrust, especially regarding Syria's new leadership and Israeli security concerns, have stalled normalization prospects, leading to further market price declines.

U.S.‑Saudi reconfiguration article notes no concrete steps toward Israel‑Syria normalization

December 31, 2026 drops to 24%11%

War on the Rocks analysis on Dec 30 2025 highlighted that Saudi and broader Arab leaders see no tangible timeline or confidence‑building measures for Israel‑Syria diplomatic ties, underscoring regional skepticism and contributing to the market’s decline in late December.

Hezbollah replaces top security official amid internal restructuring

Hezbollah’s leadership change signalled ongoing instability on Israel’s northern frontier, reinforcing concerns that security tensions would dominate the agenda and further dampen normalization hopes, pushing prices lower.

Syrian interim President Ahmed al-Sharaa meets EU leaders signaling improved Western ties

December 31, 2026 rises to 36%4%

The EU delegation's visit and financial support pledge to Syria under al-Sharaa indicated Syria's diplomatic opening to the West but did not translate into progress on normalization with Israel, maintaining market skepticism.

EU leaders visit Syria and pledge financial support

June 30, 2026 drops to 14%10%

European Commission President Ursula von der Leyen and Council President António Costa visited Syria, announcing €620 million in aid and signaling improved Western ties, but no mention of diplomatic relations with Israel, leaving normalization prospects unchanged.

Israeli cabinet approves 20 new West Bank settlements

December 31, 2026 drops to 28%8%

The Israeli government approved a batch of new settlements, underscoring a hard‑line stance that reduced optimism for any peace overture toward Syria, contributing to a price drop for both outcomes.

Israel approves 19 new West Bank settlements amid rising tensions

June 30, 2026 drops to 18%6%

The Israeli government approved new settlements in the West Bank, escalating tensions with Palestinians and complicating regional diplomacy. This move diminished market confidence in normalization prospects by signaling continued Israeli expansionism and hardline policies.

Israel clears final hurdle for controversial West Bank settlement project

Israel approved the tender for the E1 settlement project near Jerusalem, underscoring its settlement expansion agenda and diminishing prospects for a regional diplomatic thaw, which contributed to a further price drop.

Calls to repeal U.S. Caesar sanctions on Syria to aid recovery and diplomacy

December 31, 2026 drops to 26%9%

U.S. lawmakers urged repeal of sanctions to support Syria's reconstruction and political alignment with U.S. interests, potentially facilitating normalization talks. However, no immediate breakthrough occurred, reflecting cautious market sentiment.

EU leaders visit Syria and pledge €620 million aid

European Commission President Ursula von der Leyen and EU Council President António Costa met interim President Ahmad al‑Sharaa, signalling a thaw in Syria’s relations with the West and briefly boosting optimism for regional rapprochement, which caused a short‑term price rise.

Israel and Syria meet in Paris for U.S.-mediated talks

December 31, 2026 drops to 26%10%

Israeli and Syrian officials held a meeting in Paris, issuing a joint statement that emphasized a communication cell but stopped short of any concrete diplomatic breakthrough, reinforcing market doubts about a formal normalization before year‑end.

Israel and Syria abandon joint communication cell in Paris talks

December 31, 2026 plunges to 21%15%

Israeli and Syrian delegations met in Paris but left without agreeing to establish the joint communication cell intended to coordinate intelligence and de‑escalation, signaling a setback in normalization efforts and prompting a sharp price drop for both outcomes.

Trump administration's peace plan raises hopes but progress stalls

June 30, 2026 drops to 24%9%

Despite initial optimism from the Gaza ceasefire and regional shifts, diplomatic efforts including with Syria have stalled due to Israeli reluctance to concede territory and ongoing military actions, dampening market confidence in normalization by June 30, 2026.

Trump administration highlights missed opportunities for Middle East peace including Israel-Syria normalization

December 31, 2026 drops to 37%7%

A senior Israeli defense official noted that diplomatic efforts have stalled, with all fronts in the Middle East still open. Despite openings created by recent conflicts, Israel remains wary of losing freedom of action in Syria, dampening prospects for normalization and causing market prices to fall.

Israel and Syria resume U.S.-brokered talks in Paris

June 30, 2026 drops to 22%11%

Syrian and Israeli officials met in Paris for U.S.-mediated talks aiming to broker a security agreement focused on sovereignty, stability, and security. They agreed to establish a joint communication cell for coordination under U.S. supervision. This raised hopes for normalization but did not resolve core issues, leading to a moderate price decline for normalization by June 30, 2026.

Saudi Crown Prince reiterates Palestinian statehood as precondition for normalization with Israel

December 31, 2026 drops to 44%7%

Saudi Arabia publicly and privately emphasized that normalization with Israel remains contingent on progress toward Palestinian statehood, with no concrete steps toward normalization, dampening regional prospects including Syria's potential moves.

Israel and Syria hold first U.S.-mediated talks in Paris

Israeli and Syrian officials met in Paris for U.S.-brokered talks on a security arrangement, raising hopes for a diplomatic breakthrough but ending without a joint statement, which led to a modest price decline as traders saw no concrete progress.

EU delegation visits Syria, signals openness to diplomatic engagement

June 30, 2026 drops to 14%11%

Senior EU officials met Syrian interim President Ahmad al‑Sharaa, offering substantial financial support and expressing willingness to improve relations, which briefly raised hopes of a Syrian‑Israeli rapprochement before the market corrected as no concrete steps with Israel followed.

Israel and Syria resume U.S.-brokered talks in Paris

December 31, 2026 drops to 45%6%

Israeli and Syrian officials met in Paris for U.S.-mediated talks focusing on security and cooperation, agreeing to establish a joint communication cell to facilitate coordination. Despite this diplomatic engagement, the talks did not lead to official normalization, reflecting cautious progress and ongoing tensions.

Israel and Syria resume U.S.-brokered talks in Paris

June 30, 2026 plunges to 31%19%

Israeli and Syrian officials met in Paris for U.S.-mediated talks focusing on security, sovereignty, and cooperation, raising initial hopes for normalization. The joint statement about establishing a communication cell suggested progress, causing a temporary increase in market optimism for normalization by June 30, 2026.

U.S.-mediated Israel-Syria talks resume in Paris to defuse tensions

June 30, 2026 rises to 52%2%

Syrian and Israeli officials met in Paris under U.S. mediation to discuss a security agreement focused on sovereignty, stability, and security, raising hopes for normalization. This event initially boosted market optimism for normalization by June 30, 2026.