Middle East Tensions Fuel Record Highs for Israeli Stocks
Israeli stocks surged to record highs as U.S. strikes on Iran's nuclear sites boosted investor confidence in regional security. The Tel Aviv 125 and TA-35 indices registered significant gains, with improved market conditions further driving up share and bond prices, alongside a stronger shekel.
In a dramatic market response to escalating tensions in the Middle East, Israeli stocks soared to unprecedented levels on Sunday following the U.S.'s targeted military strikes on Iran's nuclear sites. Investors are optimistic the actions will prevent Tehran's nuclear weapons development for the foreseeable future.
The broader Tel Aviv 125 index closed 1.8% higher, continuing the positive momentum with an 8% rise over the past week. The blue-chip TA-35 index also experienced a significant 1.5% gain amid the regional turmoil.
The market rally occurs against the backdrop of intensified Israeli military operations, targeting Iranian nuclear and military sites, and retaliatory strikes from Iran. Despite the conflict, investor sentiment remains buoyant, bolstered by strengthening bonds, an appreciating shekel, and expectations of strategic alignments possibly involving Saudi and American interests.
(With inputs from agencies.)
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