War is bad for stocks? Think again

Saturday, 21 June 2025 00:05 - - {{hitsCtrl.values.hits}}

Israel and Iran stock markets hit record highs amid conflict

Missiles struck the heart of Tel Aviv’s financial district yesterday, yet investors barely flinched. Defying conventional market logic, Israel’s stock indices surged to record highs, even as tensions with Iran escalated dramatically.

Notably, shares of the Tel Aviv Stock Exchange itself (TASE.TA) climbed approximately 1.67% to close around 6,161 ILA, extending impressive year-to-date gains beyond 45%. Broader market indices also reached fresh 52-week peaks, with the prominent Tel Aviv-35 closing at approximately 2,834 points, and the Tel Aviv-125 index finishing around 2,850 points.

Meanwhile, Iran’s Tehran Stock Exchange (TEDPIX) remained near its recent all-time highs around 3,035,000 points, despite a brief pullback triggered by recent conflict developments. TEDPIX’s dramatic year-over-year increase of roughly 46% has largely been driven by aggressive domestic monetary expansion and capital fleeing currency instability, rather than true economic strength.

Finbold’s market analyst Jordan Major explained these unusual market dynamics:

“Investors seem to be betting on resilience rather than peace. Israeli markets are buoyed by sector rotation into defence, cybersecurity, and commodities, alongside robust governmental support and expectations of swift, limited military retaliation. In Iran, however, market strength primarily reflects investors’ efforts to shield their capital from currency instability rather than genuine economic optimism.”