Missiles hit Tel Aviv and Haifa. Air raid sirens echo. But Israeli markets defy war fears and rise higher.
While most countries see their stock markets crash during war, Israel is different. The TA-125 Index, which tracks top Israeli stocks, is climbing. It’s gone up for six straight days—even after the US bombed Iranian nuclear sites.
This isn’t just luck. It’s confidence. Investors are betting that Israel, backed by the US, will come out of this conflict stronger.
Local Investors See Opportunity in Chaos
Israeli markets are mostly held by locals. These investors are used to conflict. They’ve seen wars before. And they’ve learned that panic selling doesn’t pay.
Since the Gaza war started in October 2023, the economy has stayed strong. Jobs are still there. GDP is still growing. Even with foreign workers gone, Israel is holding steady.
Those who invested back in October are now up about 46%. That’s even more than the S&P 500’s 40% return in the same time.
US Strikes Boost Market Optimism
So, what’s different now? It’s not just that Israel knows how to handle war. It’s that the US is involved—directly.
President Trump’s decision to strike Iran’s nuclear sites sent a strong message. Investors believe Iran’s power is being reduced.
Even as Iran launched a missile attack on Sunday, Israeli markets didn’t flinch. The TA-125 gained another 1%. The shekel got stronger. Bonds stayed steady.
Markets are saying: this isn’t chaos. It’s control.
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New Security Map Is Taking Shape
The region is shifting. Hamas is weak. Hezbollah is hurting. Iran’s influence in Syria is falling.
With US help, Israel may be reshaping the Middle East.
Rafael Gozlan from IBI Investment House says the “risk premium” on Israeli stocks is now lower. That means foreign investors may soon return once the dust settles.
Things really changed when Israel killed Hezbollah’s top leader. The US airstrikes just confirmed what many believed: Israel has the upper hand again.
But Risks Still Remain
War is never simple. Iran could hit back harder. The conflict could drag on. And the deeper issue—the Palestinian question—is still not resolved.
But for now, Israeli markets defy war fears. Investors trust Israel’s strength, and its alliance with Washington.
Whether that trust lasts depends on what Iran does next.
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