Israeli Assets Sell Off as Traders Position for Iran Retaliation

  • Stocks, dollar bonds drop most worldwide before Israel weekend
  • Iran has vowed retaliation for a strike in Damascus on Monday

The Tel Aviv Stock Exchange.

Photographer: Kobi Wolf/Bloomberg
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Israel’s benchmark TA-35 stock index dropped and Israeli dollar bonds declined to their lowest levels since last year as traders reduced risk amid heightened fears of an attack by Iran.

The TA-35 index was down 2.4% as of 3 p.m. in Tel Aviv, the biggest loss worldwide and the second day this week it’s dropped more than 2%. Israeli dollar bonds due in July 2030 fell about 0.8 cents to 85.592 cents on the dollar, their lowest level since Nov. 2023, in the biggest drop among emerging-market sovereign dollar bonds on the day.