Israel’s financial markets are in freefall. The country’s stocks and currency have emerged as the worst performers globally this month, a dramatic reversal for a market that was riding high on optimism just weeks ago.
The TA-125 index, Israel’s benchmark stock gauge, had surged over 14% year-to-date earlier in 2026. Investors had been betting on long-term regional stability, pouring money into Israeli equities.
The index has now earned the unwanted distinction of being one of the worst-performing major equity benchmarks on the planet this month.
The shekel hasn’t fared any better, sliding alongside equities as foreign investors pull capital and reassess their exposure to the Israeli market.
The Iran deal factor
