Tel Aviv Stock Exchange shares drop after Israeli strike on Houthi-controlled port in Yemen

Shares on the Tel Aviv Stock Exchange drop after Israel conducted a major strike against the Houthi-controlled port of Hodeida in western Yemen yesterday, a day after a drone launched by the Iran-backed group killed a man in Tel Aviv.

Tel Aviv Stock Exchange’s benchmark TA-125 index and the TA-35 index of blue-chip companies both fall by 1.1%. The Tel Aviv index of the five largest banks is down 1.3% and the TA-Construction index declines 1.6%. The TA-Biomed index drops 2%.

The strike over the weekend marked the first time the Israel Defense Forces has carried out a strike in Yemen, and came after a drone launched by the Houthis group struck Tel Aviv on Friday. The Israeli Air Force strike on the Houthi-controlled port targeted fuel depots, energy-related sites, and other facilities and was aimed at preventing the group from importing Iranian weapons, as well as causing the Iran-backed rebels financial damage.