US-Iran Tensions Escalate Amid Sharp Global Market Declines Including Tel Aviv Exchange

The Tel Aviv Stock Exchange awaits opening amid escalating US-Iran military confrontations and significant market downturns across Asia and the US. The US intensified attacks on Iran, targeting a bridge and an airport, marking the fifth consecutive night of strikes. Despite this, Israeli officials believe Iran aims to avoid dragging the Israel Defense Forces into the current conflict, warning that any misstep would result in a heavy price.

In Kuwait, 32 drones were intercepted this morning amid ongoing regional tensions. Asian markets suffered steep losses, with Tokyo falling 5.4% and Hong Kong dropping 2.5%. US futures for the Nasdaq declined 1.7%, following a sharp fall in the previous session. On Wall Street, the Nasdaq closed down 1.5%, with Alphabet shares dropping 4.4%. The Dow Jones and S&P 500 also declined by 0.2% and 0.5%, respectively.

Technology stocks faced notable declines, with semiconductor companies Marvell, Arm, and Intel falling 8.7%, 5.4%, and 5.8%. Alphabet reportedly postponed the launch of its leading AI model. Apple rose 1.8% after a strong 4% gain the day before, while Netflix dropped 6% in after-hours trading following lowered 2026 forecasts.

In Tel Aviv, the stock exchange fell 1%, pressured by semiconductor sector losses. Tower Semiconductor, Nova, and Camtek declined 5.9%, 3.6%, and 2.9%, respectively. Conversely, Shapir Engineering surged 8.6% after winning a major 34-year contract to extend and operate the northern section of Highway 6. Defense equipment company Arasal was acquired at a valuation of 108 million shekels, causing its shares to jump 25.2%.