According to a report from the Hebrew-language economic newspaper Calcalist, the anxiety surrounding a potential repeat of the 12-day war has caused a significant drop in all stock indices, resulting in losses exceeding 43 billion shekels.
This Hebrew media outlet acknowledges that escalating fears of conflict with Iran have unsettled investors, leading to a sharp decline in the value of Tel Aviv stocks over the past week. As the situation prolonged, the losses intensified, with the exchange losing nearly 43 billion shekels in total market value.The Tel Aviv insurance index experienced the most significant decline, plummeting by 7.5%. This index had been a market star over the past two years, as its rise—soaring 370% since October 7, 2023—played a crucial role in reducing risk premiums in Israel due to military successes in various domains.
Given that insurance companies are considered a comprehensive option for Israel’s economy, this index felt the brunt of the looming tensions with Iran, as experts predict it will lead to increased risk premiums.Three real estate market indices—Tel Aviv-Manif Israel Tel Aviv-Real Estate and Tel Aviv-Construction—also witnessed significant declines each dropping by approximately 3.6%. The index for the five largest banks Tel Aviv-Banks 5 fell nearly 2% while the main stock market index Tel Aviv-125 decreased by 2.1%.
