I doubt the conflict between Israel and Lebanon has much real effect on the financial market at this point.
Neither country is of great significance to markets. The real danger to the markets would be if Syria or Iran got involved. Iran is talking tough, but they are keeping the oil exports steadily flowing despite the rhetoric. Syria isn't even playing the rhetoric game.
There's some oil price speculation going on, but that's more about people trying to guess how other people will react rather than real concerns about supply.
The markets are much more concerned about economic indicators showing consumer spending, inflation, and what the Fed might to with interest rates.
"Neither country is of great significance to markets. "
http://www.ishitech.co.il/stock_page.htm
Israeli companies, particularly in the high-tech area, have recently enjoyed considerable success raising money on Wall Street and other world financial markets; Israel now ranks second among foreign countries in the number of its companies listed on U.S. stock exchanges.
http://en.wikipedia.org/wiki/Economy_of_Israel