Within a few hours yesterday, Shekel changed the trend, and placed it on the US dollar by more than 1.5 %, while the world’s oil price increased by 6 %. Both development seems to be the result of increasing fears among investors that Israel will attack Iran. This morning, Tel Aviv exchange indicators were opened on acute fall, ranging between 2 % and 3 %, although the fall was ran towards the closure.
The SHEKEL-Dollar exchange rate, which was somewhat sleeping last week, jumped about 3.49/$ NIS yesterday evening, and is currently at 3.56/$.
The price of oil jumped from $ 65 a barrel to $ 69, and it appears that due to investor fears that the attack on Iranian nuclear facilities is accompanied by an attack on its Mascaa, in an attempt to weaken the Iranian regime’s ability to fight. Since yesterday, the price of oil ran a little (to about $ 68 a barrel), but it is still 7 % for the week. Since the lowest level, a little more than a month ago, when the price of oil touches 57 dollars a barrel amid fears of global recession as a result of the US tariff policy, it rose by more than 20 %. The price of gold has also increased over the past twenty -four hours, by 1.5 % to $ 3,370 an ounce.
Among the new factors that weighing the minds of investors yesterday are reports that the United States had ordered the evacuation of employees from its embassy in Iraq, with the deadline set by President Trump for negotiations with Iran in the background. In recent press interviews, the American president seemed less hope than before on the risk of reaching an agreement with Iran. In the past, Trump said that if no agreement is reached, the United States will lead an attack on Iran’s nuclear facilities, and that the country will not be allowed to have nuclear weapons. This evening, the president said he prefers an agreement, but the Israeli attack on Iran “could happen.”
How will Shekel be affected by a strike against Iran?
Moody Shafri, a strategy expert on financial markets at Habayywim, said in the sponsorship of “Globes” this morning, within the past twenty -four hours, especially yesterday evening, reports have emerged that the United States was removing embassies towards Iran, these headlines in a blatant contradiction with what was there at the beginning of the negotiations.
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Shekel weakens and falls sharply in the midst of Iran’s attack tensions
“The US President said that a close agreement, and now the message has become more honest by the American administration, as well as from Israel. All this finds an expression in the high price of oil, and to weaken a shekel in Israel.
“An attack from Israel will continue this trend in the short term, but not necessarily in the long run. If there is a blow that truly removes the Iranian threat, a shekel will weaken the short term due to the fear of Iranian revenge, but if the attack is not bad, this cannot be any attack. Israel, the rate of the dollar shekel, and so on.”
Despite all fears, it is not a secret that in recent months, and in fact over the past eighteen months, the Tel Aviv Stock Exchange has shown flexibility and great optimism, despite all the developments in the war. The AVIV 35 Tel Index increased by 12.5 % for the year so far, and increased by 0.1 % this week.
Not only the reaction of the important stock investors; Bond indicators are also an important indicator. The general Tel GOV index decreased slightly a week, by 0.2 %, but it is still in green lands for the year so far (0.5 %). The index covers all Israeli government bonds, and the return on maturity that means 3.69 % this morning.
How does that look at the past? It represents a somewhat sharp increase in the 3.28 % level in the last four months, and it compares with a peak of 3.8 % in the rise in panic last summer. The rise in the return reflects a mixture of investor fears of more security escalation, which means an increase in the risk of Israeli government bonds, as well as high government expenditures that require increased debt.
Another interesting indicator for measuring nervousness for investors is Tel Gov Shekel 10+, an indicator that covers the longest Israeli bonds, and thus the most dangerous bonds for investors. This indicator responds sharply to developments. It decreased by 1.8 % last month, but it still increases by 0.8 % for the year. The return on maturity is 4.8 %. This compares with a decrease in February by 4.4 %, and 5.5 % climax last July.
It was published by Globes, Israel Business News – En.globles.co.il – on June 12, 2025.
© Copy Publish Publisher Itonut (1983) Ltd. , 2025.
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