Tel aviv: Israeli stock markets experienced a significant surge, and the national currency strengthened following joint military operations conducted by the United States and Israel against Iran.

According to Thai News Agency, stock indices on the Tel Aviv Stock Exchange saw a rally as the Israeli shekel strengthened, reflecting investor confidence that these military actions would positively impact by reducing long-term geopolitical risks. The Tel Aviv Stock Exchange's overall index rose sharply, with notable increases in the insurance, financial, and construction sectors. Specifically, the insurance index (TA-Insurance) jumped 6.1%, the financial index (TA-Finance) increased by 5%, and the construction index (TA-Construction) rose by 4.5%. Additionally, the TA-35 index, which includes blue-chip companies, gained 3.2%. The Israeli shekel also appreciated by 0.3%, trading at approximately 3.12 shekels per US dollar.

The Times of Israel quoted Jonathan Katz, a macroeconomist at Leader Capital Markets, who stated that investors are optimistic about the joint US-Israeli operations' potential to mitigate long-term geopolitical risks, despite the ongoing conflict with Iran. He emphasized that Israel's advanced military capabilities, including missile interception systems like Arrow and David's Sling, provide reassurance to investors that crucial economic infrastructure and industrial zones will remain secure and unaffected by potential conflict-related damages.

Katz further observed that President Donald Trump appears keen on avoiding a prolonged conflict, even if the operations do not result in a regime change in Iran. He noted that a weakened Iran would be beneficial for Israel. However, Katz cautioned that the primary risk for Israel is becoming embroiled in a prolonged 'war of attrition,' which could strain its budget and manpower over time, rather than dealing with a short-term confrontation.