US-Iran war: Israel stock market opened about 2.5% lower on Monday, March 9, as the conflict with Iran entered its second week, weighing on investor sentiment. Israeli indices joined several global markets that began the day in negative territory amid rising geopolitical tensions and concerns over energy supply disruptions and surging oil prices.
On Monday, Israel's Tel Aviv 35 index (TA 35) fell by over 2.44% to 4,250.31. Meanwhile, the Tel Aviv 125 (TA 125) index was down 2.62% to 4,216.17.
Israel stock market performance
The Israeli stock market has largely remained positive since the start of the joint US-Israeli military operations against Iran on February 28. The TA 35 index has gained in three out of five sessions since the start of the war.
Last week, the Tel Aviv 35 emerged as the second-best performer among major global equity gauges, ending the week with gains of more than 7% in dollar terms.
Shares of Delek Group surged 22%, while Elbit Systems — the index’s heaviest-weighted constituent — climbed 16% during the same period.
Meanwhile, the Israeli shekel strengthened 1.4% against the US dollar, marking its biggest advance in two months and the strongest performance among major currencies.
Israel’s equity markets rallied strongly in the early days of the conflict, with key indices hitting record highs. On March 2, 2026 — the first full trading session after the strikes began — the TA-125 Index surged nearly 6% to a record 16,160.
The momentum continued as the TA-35 Index climbed to a fresh all-time high of 4,368.63 on March 3.
By March 6, the TA-125 had risen about 5.8% for the month, while the TA-35 advanced more than 6.3% during the first week of the conflict, reflecting strong investor confidence despite geopolitical tensions.
Rafi Gozlan, chief economist at IBI Investment House, was quoted as saying by Bloomberg, that the gains were likely driven by local investors, including mutual funds focused on Israeli assets.
Some market participants may be looking beyond the current turmoil, taking a long-term view that a potential victory by Israel and the United States could reduce risks going forward, Gozlan added.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
