Israeli stock market skyrockets 65% after Hamas attack

Israel has witnessed a significant increase in its stock market following the Hamas-led attack on October 7, 2023. Amidst ongoing conflicts and geopolitical tensions, the Tel Aviv Stock Exchange reported a 65% rise since that event. As of now, the broad Tel Aviv 125 index has surged by 26% this year alone, achieving record highs, showcasing resilience in the face of adversity. This impressive growth is attributed to various factors, including the weakening of Hezbollah, the fall of the Syrian regime, and a growing sense of optimism regarding Israel’s strategic situation. The overall development stems from a convergence of favorable developments that improved the geopolitical landscape. The ongoing war against Hamas, although still a threat, has not deterred investment in the Israeli market. On the contrary, it seems to have drawn local and international funds back into the country’s economy, reaffirming confidence in Israel’s technological and industrial sectors. Investment in Israeli technology firms has reached a three-year high with over $9 billion in private funding secured in just the first half of 2025. Prominent figures in the investment community believe that these changes in perception regarding the geopolitical situation have led to renewed interest from investors. Leaders like Yaniv Pagot and Yariv Becher have indicated that the improvement in regional dynamics has created an environment conducive to economic growth. They anticipate that if a lasting peace agreement can be established, the market will likely continue to thrive. The combination of resilience and strategic shifts has led to a renewed wave of optimism among investors and the general populace. Experts emphasize that the unique characteristics of Israeli resilience amid conflict contribute significantly to public sentiment toward investment in the country. Individuals involved in economic development and funding initiatives are starting to see the potential for substantial stability and growth moving forward. The overall narrative from the stock exchange underscored by increasing investment activity suggests that Israel’s economy is not only surviving but thriving amidst ongoing challenges.