Tel Aviv shares reverse early gains after US-Iran deal news, defense stocks lead declines

Trading on the Tel Aviv Stock Exchange opened higher on Monday, June 15, 2026, after reports that the United States and Iran were nearing a deal expected to be signed on Friday. The early optimism faded quickly, and by midday the main indices had erased their gains and turned sharply lower.

At 2:37 p.m., the TA-35 was down about 1%, the TA-90 had fallen 1.9%, and the TA-125 was off 1.2%. Defense shares were hit hardest from the start, including Elbit Systems and Aerodrome Group, as the market priced in a possible drop in demand for defense equipment if an agreement is reached.

Insurance stocks also posted steep losses, with Harel, Migdal, Menora and Clal all weakening sharply. The report noted that insurers manage pension savings and large investment portfolios, which makes them especially sensitive to broad market declines. Bank stocks also moved lower.

In foreign exchange, the dollar weakened overnight as the first deal reports emerged, falling to 2.88 shekels when continuous trading began in the morning. It later recovered somewhat and was trading near 2.91 shekels.