Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent: More than 70 martyrs in Israeli attacks on Gaza since dawn.
Death toll from latest Israeli strikes on Gaza rises to 30
Al Mayadeen's correspondent: Five killed in the Israeli bombing of a civilian vehicle on Al-Qassam Street in Khan Younis, south of the Gaza Strip
Hamas confirms that it has no connection to the shooting incident in Rafah and affirms its commitment to the ceasefire agreement
Al Mayadeen's correspondent: Two civilians were killed and four others, including a child and an infant, were injured in an Israeli bombing of a house belonging to the Al-Banna family in the al-Sabra neighborhood, south of Gaza City
Al Mayadeen's correspondent: An Israeli airstrike targets the vicinity of Al-Shifa Medical Complex, west of Gaza City
Al-Qassam: We will postpone the handover of the body of the Israeli captive we found, which was scheduled for today, due to the occupation's violations
Al Mayadeen's correspondent in Gaza: Israeli occupation aircraft launch airstrikes on the city of Rafah in the southern Gaza Strip
Netanyahu's office: At the end of the security consultations, the prime minister instructed the military to launch massive military strikes on the Gaza Strip immediately
President Aoun: We urge the activation of the monitoring committee, the cessation of hostilities, ongoing Israeli violations, attacks

Gaza war drags Israeli stocks; business leaders warn of economic abyss

  • By Al Mayadeen English
  • Source: Agencies
  • 16 Sep 2025 16:44
  • 4 Shares
4 Min Read

Investors and business leaders are warning of a severe economic fallout amid worsened market sentiment and political isolation.

Listen
  • x
  • A general view of Jaffa, Occupied Palestine, on August 12, 2024. (AFP)
    A general view of Tel Aviv, occupied Palestine, on August 12, 2024 (AFP)

Israeli stocks are on track for a five-day losing streak as the intensification of the war on Gaza triggers renewed investor anxiety. The Tel Aviv Stock Exchange 35 Index (TA-35) dropped as much as 2.3% on Tuesday, at one point recording the steepest losses globally, before recovering slightly to close down 0.2%.

The decline occurred despite a continued rally in global markets driven by expectations of further easing by the US Federal Reserve. The selloff affected nearly every sector, with 31 of the TA-35 index's 35 constituents falling.

Major players, such as Teva Pharmaceutical Industries Ltd. and Mizrahi Tefahot Bank Ltd., were responsible for roughly 37% of the index’s movement.

Despite this downturn, the Israeli stock market had shown strong performance earlier in the year, with the TA-35 rising 26% through September 9. However, that momentum has sharply reversed as the war on Gaza drags on with no clear resolution in sight.

Read more: Israeli doctors block Ayalon highway, call for a captive exchange

Business leaders warn of economic downturn

The prolonged war on Gaza, particularly the renewed military operations targeting Gaza City, has triggered concern from business leaders and market analysts. Images of destruction and mounting international criticism, even from allies of "Israel", have added pressure on the market.

Israeli Prime Minister Benjamin Netanyahu acknowledged "Israel's" growing isolation and pledged to pursue economic self-sufficiency in the face of potential sanctions.

“The costs of endless wars on all fronts in terms of lost growth, emigration of human capital, worse international relations, greater domestic political polarisation, and arguably, no better security all weigh on Israeli asset prices,” Hasnain Malik, a strategist at Tellimer in Dubai, told Bloomberg. “PM Netanyahu’s latest speech that urges preparedness for more economic autarky reinforces those concerns.”

Israel Business Forum: Netanyahu leading 'Israel' to ‘dangerous, unprecedented’ downturn

The Israel Business Forum, which represents most private sector workers from 200 of the entity's largest companies, warned that Netanyahu's policies are leading "Israel" into a “dangerous and unprecedented economic and political downturn.”

This comes after Netanyahu said yesterday that "Israel" was facing the threat of diplomatic isolation over the war on Gaza, adding that it needed to become a “Super Sparta” and be self-reliant.

“We are not Sparta — this vision as presented will make it difficult for us to survive in an evolving global world,” the forum warned. “We are marching toward a political, economic, and social abyss that will endanger our existence in Israel.”

“The Israeli economy shows exceptional resilience, despite the security and political challenges — but not forever,” the forum added.

The forum demanded that Netanyahu “stop this” policy and called on the government to immediately change course.

“The government must urgently put an end to the longest war in Israel’s history, promote the release of all hostages, announce a state investigation committee [regarding the Hamas-led October 7, 2023, attack], and set a date for elections in the immediate future,” the forum demanded.

Read more: Gaza City faces heavy fire as Netanyahu confirms ground invasion

Technical indicators signal market vulnerability

Technical analysis shows that the earlier rally may have overextended market valuations. The relative strength index for the TA-35 recently approached levels associated with overbought conditions.

Additionally, the moving average convergence-divergence indicator displayed a bearish crossover, hinting at further weakness ahead.

While stocks fell, other assets were mixed. The shekel posted modest gains, and "Israel’s" sovereign dollar bonds remained largely unchanged. Still, growing fears over the trajectory of the Israeli economy continue to influence investor sentiment.

With the war on Gaza escalating and no immediate diplomatic or political resolution in sight, both domestic and international investors are expected to remain cautious.

  • Israel economy
  • Israeli economy
  • economy
  • Gaza
  • war on Gaza
  • Palestine
  • Israeli stocks
  • Tel Aviv Stock Exchange

Most Read

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • 24 Oct 2025
Arab League chief exposes secret US deal shielding 'Israel’s' nukes

Arab League chief exposes secret US deal shielding 'Israel’s' nukes

  • Politics
  • 27 Oct 2025
Abu Hamza, the spokesperson for the Al-Quds Brigades, during a speech televised on October 22, 2025 (Al-Quds Brigades Military Media)

Al-Quds Brigades' Abu Hamza mourns leaders, vows continued resistance

  • Politics
  • 22 Oct 2025
US missionary kidnapped in Niger capital, suspected taken toward Mali

US missionary kidnapped in Niger capital, suspected taken toward Mali

  • Africa
  • 23 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Members of the al-Qassam Brigades, the military wing of Hamas, and Egyptian workers search for the bodies of hostages in a tunnel discovered during searches in Hamad City, Khan Younis, in the southern Gaza Strip, on Tuesday, Oct. 28, 2025 (AP)
Politics

'Israel' obstructing Gaza body recovery, creating false claims: Hamas

Lebanese Prime Minister Nawwaf Salam talks to US Deputy Special Envoy to the Middle East Morgan Ortagus at the Grand Serail in Beirut, Lebanon, October 28, 2025 (NNA)
Politics

Salam conveys to Ortagus goals behind any possible negotiations

Writers boycott NYT, demand justice as Gaza media ban faces court
Politics

300+ writers boycott NYT Opinion, cite persistent anti-Palestine bias

Settlers attack West Bank olive harvesters, Injure 3 Palestinians
Politics

Settlers attack West Bank olive harvesters, injure 3 Palestinians

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS