Ofer Yanai Negotiates Major Power Plant Deal as Tel Aviv Market Awaits Opening Amid Global Market Volatility

Ofer Yanai, through his control of Nofar Energy, is reportedly in advanced talks to acquire Phoenix's 39.5% stake in the Reindeer power plant project for approximately 700 million shekels, valuing the project at 1.8 billion shekels. The Reindeer plant, a natural gas facility planned in central Israel's southern Sharon region, is designed to have a capacity of up to 900 megawatts and is nearing financial closure after securing most necessary permits. Yanai's involvement would reposition him in Israel's electricity production market, following his sale of his stake in the Dorad power plant to Amos Luzon four months ago amid a strategic separation process between their companies. This move coincides with Nofar Energy's acquisition of control over renewable energy company Alomay Capital, valued at one billion shekels, which holds a significant stake in the Dorad plant near Ashkelon.

Separately, Electra is set to invest 40 million euros (about 140 million shekels) to build a central switching station connecting the Karam power plant to Israel's national grid. The Karam plant, a combined cycle gas turbine facility with an 800-megawatt capacity, is being developed by Shamir Energy near Rosh HaAyin, with an estimated cost of around 5 billion shekels.

The Tel Aviv Stock Exchange is reopening after the Tisha B'Av holiday amid sharp declines on Wall Street and a surge in oil prices, with Brent crude rising 7% and WTI 6% before partial retracement. The US announced the reinstatement of tariffs on numerous countries, including a 12.5% tariff on Israel, citing lax enforcement of forced labor bans. This announcement coincides with ongoing US strikes in Iran and marks the expiration of previous tariffs imposed by former President Trump. The Nasdaq fell 2.2%, the S&P 500 dropped 1.2%, and the Dow Jones declined 1% in the previous session. Israeli stocks Nices and Camtek returned with a negative arbitrage of 2.5%, while Tower Semiconductor showed a positive gap of 5.5%.

US Treasury yields rose following the tariff news, with the 10-year yield increasing to 4.70%, the highest since January 2025, and the 2-year yield rising to 4.36%. Israeli 10-year bond yields also climbed to 2.91% after five consecutive days of increases totaling 14 basis points.