US STOCKS: Early Equities Roundup: Modest Retreat After Nasdaq Set New High

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• AUD/USD: $0.6535-50(A$1.2bln)
• NZD/USD: $0.5850-70(N$540mln)

A Qatari Ministry of Foreign Affairs spokesperson said, “The State of Qatar strongly condemns the cowardly Israeli attack …. [Qatar] will not tolerate this reckless Israeli behavior ... Investigations are underway at the highest level, and further details will be announced as soon as they are available.”

• A senior Hamas source told Al Jazeera the group's leadership delegation survived the strike, but that should be treated with caution as Hamas has rarely publicly acknowledged a successful assassination attempt.
• The Jerusalem Post reports:  "Israeli sources estimate ... Senior Hamas officials were killed in the strike in Doha — but at this point, there is no confirmation. It will take time."
• The Saudi Foreign Ministry said Riyadh strongly condemns the "brutal" Israeli attack, and warned of "dire consequences", per Reuters. The Saudi State news agency said Saudi Crown Prince Mohammad Bin Salman affirmed the Kingdom's "support to deploy all capabilities to support Qatar" after the Israeli attack.
• A UAE spokesperson said: "The security of the Gulf states is indivisible, we stand as one heart with sister Qatar, and condemn the treacherous Israeli aggression that targeted it, and emphasize our absolute solidarity in the face of this attack.”
• It is not immediately clear whether Qatar could mount a military response to the attack, but the operation is likely to have profound consequences for any future ceasefire negotiations. More broadly, it is likely to undermine any future efforts for an expansion of the Abraham Accords to include Saudi Arabia. 

Israel has conducted a major air strike on members of Hamas' leadership in Qatar. The strike is a significant escalation of Israeli extraterritorial operations, hitting a Gulf Cooperation Council (GCC) member for the first time. Qatar, an intermediary between Hamas and Israel, has long been viewed as a valuable conduit to ceasefire talks, despite providing diplomatic protection for Hamas officials.

• Amichai Stein at the Jerusalem Post reports that more than 10 Israeli fighter planes participated in the strikes, suggesting that the US may have had some forewarning of the attack as Qatar hosts the largest US air base in the region.
• Israeli Prime Minister Benjamin Netanyahu's Office appeared to head off reports that the attack was coordinated with the US: "Today's action against the top terrorist chieftains of Hamas was a wholly independent Israeli operation. Israel initiated it, Israel conducted it, and Israel takes full responsibility."
• Notably, the strike came less than two days after US President Donald Trump gave Hamas a “last warning” to surrender on Truth Social. That message was followed by an Israeli evacuation order for Gaza City as the IDF accelerated its operation to take control of central Gaza.
• The attack may have been greenlit after gunmen, believed to be from the West Bank, killed five people in Jerusalem yesterday. Netanyahu said: “…we will get everyone who helped them, everyone who sent them, and we will carry out even tougher measures."