Israeli stocks and the shekel have fallen sharply as investors worry that a possible peace agreement between the US and Iran could leave Israel in a weaker strategic position after years of market gains during the regional war.
Israel's benchmark TA-35 index has dropped more than 12% in dollar terms in June, making it one of the weakest-performing major national equity benchmarks this month.
The selloff also hit the Israeli currency, with the shekel falling 3.1% against the US dollar over the past month to around 3 per dollar.
Shares of the Tel Aviv Stock Exchange itself have also fallen around 20% over the past month to around 13,160 points, underlining the scale of pressure on Israel's local capital markets.
The declines mark a sharp reversal from the rally in Israeli assets that followed the outbreak of the Gaza war in October 2023 and later expanded into a broader regional conflict involving Lebanon and Iran.
