US Strikes on Iran Spike Oil Prices and Weigh on Tel Aviv Stock Exchange

Following a dramatic declaration by US President Donald Trump against the Iranian regime and subsequent American military strikes in the Strait of Hormuz, global markets have been shaken. Oil prices surged sharply, with Brent crude trading around $77 per barrel and WTI crude near $73. The US dollar strengthened against the Israeli shekel, surpassing 3.05 shekels, influenced also by the Bank of Israel's recent interest rate cut to 3.5%.

The Tel Aviv Stock Exchange opened with a negative trend on Wednesday amid renewed Middle East tensions and the US response to Iranian aggression. The TA-35 index fell about 1%, the TA-125 dropped roughly 1.1%, and the TA-90 declined approximately 1.6%. These losses followed a 2% drop in leading indices the previous day.

The US military launched extensive strikes overnight targeting over 80 Iranian sites after Iran attacked three commercial ships in the Strait of Hormuz. The US-led Maritime Information Center raised the threat level for vessels in the area to "severe," while Iran retaliated with attacks in neighboring Gulf states.

Locally, the banking sector index rose 2.23% and the insurance index climbed 0.84%, buoyed by the interest rate reduction. Conversely, Naics shares plunged nearly 6% following a cybersecurity incident reported to the US Securities and Exchange Commission. Other notable declines included Delek Group down 2.43% and Azrieli falling 1.16%, while Bank Hapoalim led gains with a 2.29% rise.