Shares on Tel Aviv Stock Exchange drop sharply as Iran war drags on

Shares on the Tel Aviv Stock Exchange drop sharply as crude oil prices soar and global financial markets plunge as investors brace for shipping and production disruptions amid Iran attacks.

The Tel Aviv Stock Exchange’s benchmark TA-125 index falls 3.4 percent. The TA-35 index of blue-chip companies is down 3.2%. The TA-90 index, which tracks the shares with the highest capitalization not included in the TA-35 index, falls 3.6%. The TA-Construction index dives 4.2% and TA-Insurance index dips 6%.

“Although Israel’s economy is energy independent and therefore less exposed to the spike in oil and gas prices, a slowdown in global economic growth could impact local growth,” says Hadar Romano, head of research at the Tel Aviv Stock Exchange.

The declines come after Tel Aviv shares gained last week as investors were pricing in a short and effective war with Iran. The TA-35 climbed 5.53%, TA-90 by 8.68% and TA-125 by 6.25%.

“These sharp gains in the local stock exchange occurred while investors in Europe watched the outbreak of the Middle Eastern war with concern, given its impact on energy prices,” says Romano.