Tel Aviv Stocks Surge Amid Fragile Ceasefire with Iran

Tel Aviv stocks rose to near record highs as the shekel reached a two-year peak against the dollar after Israel and Iran agreed to a ceasefire. The market responded with optimism over Israel's reduced nuclear threat from Iran. Despite initial gains, a fragile ceasefire remains in place.

Tel Aviv stocks soared close to record levels while the shekel appreciated to a more than two-year high against the dollar following a ceasefire agreement between Israel and Iran. Despite the ceasefire's fragility, the market exhibited optimism about Israel countering Iranian nuclear threats.

Gil Dotan, chief business officer at IBI Investment House, noted that Israel appeared to emerge as the primary benefactor, observing substantial stock gains over the past week. Following intensified conflict beginning on June 13, the indexes gained nearly 8%, despite retaliatory actions from Iran.

Elbit Systems, Israel's leading defense firm, saw its shares rise by 60% in 2025. The shekel strengthened, and interest in Israel's financial markets surged. Experts anticipate a positive market effect from declining risk premiums, potentially leading to interest rate cuts in the near future.

(With inputs from agencies.)