Israeli Markets Rally Amid Escalating Iran Conflict

Israeli financial markets showed notable resilience amid escalating conflict with Iran, with the shekel strengthening sharply and key stock indices, including the Tel Aviv 125 and Tel Aviv 35, registering gains after initial volatility. Investors appear to be recalibrating risk, reflecting a cautiously optimistic outlook that the conflict may lead to a new regional status quo if Israel successfully delays Iran's nuclear program. Market experts emphasized that the intensity and duration of the conflict, as well as U.S. involvement, will influence future market movements. Despite ongoing missile attacks and military strikes exchanged between Israel and Iran, including damage and casualties, Israeli markets appreciated the reduced uncertainty compared to previous extreme scenarios. Officials and economists described the current market reaction as balanced and measured, suggesting a historic moment with potential for significant economic and geopolitical shifts if the Iranian nuclear threat is curtailed. Finance Minister Bezalel Smotrich highlighted the stock market gains as evidence of Israel's economic resilience amid the conflict.