Israeli stocks continue to plunge as Iran's retaliation looms
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The Israeli and Middle Eastern stock markets are experiencing significant declines due to concerns about potential retaliation from Iran and regional unrest, compounded by US economic uncertainties.
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Specialist Dilip Patel works at his post on the floor of the New York Stock Exchange, on Monday, Aug. 5, 2024. (AP)
Israeli stocks plunged the most since October due to fears of potential retaliation from Iran and the Axis of Resistance, coupled with broader global market unease, according to a Bloomberg report. The TA-35 Index dropped by up to 3.1% and was down 2.6% as of 10:24 am in Tel Aviv. This decline follows a 3.3% decrease last week, bringing the index to its lowest point since February.
While "Israel" awaits the Axis' retaliation, the US has deployed additional forces and is advocating for a ceasefire in Gaza.
Regarding the occupation, Bloomberg reported that the Israeli shekel weakened for the sixth consecutive day, falling to 3.83 per dollar by 4:30 pm in Tel Aviv, its lowest since November. Similarly, Israeli stocks have reached their lowest level since April, which was also influenced by a global downturn in equity markets.
Middle East stocks ended on lower note
Moreover, Reuters reported on Monday that the stock markets in the Middle East closed lower, with Dubai's index experiencing the steepest decline due to concerns about a potential US recession and escalating regional conflicts. The Dubai index fell 4.5%, its largest single-day drop since May 2022, driven by a 7.6% decrease in shares of Emaar Properties. The Abu Dhabi index dropped 3.4%, impacted by a 7.3% fall in First Abu Dhabi Bank's stock.
US economic fears, including a jump in the unemployment rate and weaker payroll data, have raised speculation about a potential Federal Reserve rate cut. These concerns are contributing to financial market volatility.
Saudi Arabia's benchmark index fell 2.1%, reaching its lowest level since mid-December, due to a 6.1% drop in Al Taiseer Group shares and a 5.2% decline in Saudi National Bank shares. Despite reporting higher quarterly profits, Saudi National Bank's stock suffered losses.
Oil prices moderated as global demand concerns balanced out potential supply disruptions from increasing regional conflict. In "Israel" and the US, preparations are underway for potential escalations following recent violent events involving Iran, Hamas, and Hezbollah. The US is enhancing its military presence in the Middle East to help de-escalate tensions.
The Qatari index ended flat after reversing early losses, while Egypt's blue-chip index fell 2.3%, with El Sewedy Electric's shares dropping 6.4%.
Read more: Asian stocks topple amid fears of potential US recession
