Israel’s Financial Markets Are Soaring Despite 22 Months of Brutal War
Stock prices are up, the shekel is strong, and investments are rolling in, even as the death toll rises.
The Tel Aviv Stock Exchange is defying wartime expectations.
Photographer: Kobi Wolf/Bloomberg
When Eylon Penchas talks to foreign investors these days, some complain the private equity executive isn’t enthusiastic enough. “They say I should begin any presentation with a slide saying, ‘A new era’ or ‘It’s a new Middle East,’” says Penchas, founder of Israel Legacy Partners. “But I have so many worries about what’s happening in Israel, and I would have expected the economy to go in a different direction.”
He isn’t the only one scratching his head that Israeli assets are soaring despite 22 months of a brutal multifront war. The Tel Aviv Stock Exchange’s benchmark index climbed 21.3% in the first half of 2025—outperforming almost every other global market—driven largely by investors outside Israel. The stocks of insurance and financial-services companies have fared especially well, jumping 68%. Initial public offerings more than tripled from last year, and the shekel is one of the world’s best-performing currencies, strengthening more than 9% against the US dollar over the past four months.