Markets brief
Energy Shock Pressures Global and Tel Aviv Equities
Rising oil prices drive up bond yields and weaken the shekel as Israeli investors position portfolios ahead of the holiday recess.
Markets
Crude oil spiking past $100 per barrel resets global inflation expectations — driving up bond yields and dragging down tech valuations across New York and Tel Aviv.
BackgroundCrude oil benchmarks surged after Houthi advances near Yemen's Bab el-Mandeb Strait and ongoing Hormuz tanker disruptions shut in global energy transport. Surging fuel costs complicate central bank efforts to lower interest rates.
- WTI crude jumped over 7% above $102 per barrel while Brent crude traded near $109, intensifying shipping bottlenecks and raising costs for international airlines.
- The International Energy Agency slashed its 2026 global oil demand growth forecast by 2.5 million barrels per day, warning that persistent price shocks could trigger broader economic slowdowns.
- US 10-year Treasury yields climbed toward 4.97%, lifting corporate borrowing costs and pressuring growth equities across Wall Street and Tel Aviv trading floors.
Markets
Tel Aviv stocks pulled back ahead of the holiday break as energy price shocks weakened the shekel — leaving Elbit Systems as the sole institutional safe haven.
BackgroundIsraeli financial markets trade on a schedule aligned with global market hours, closing for major national holidays. Institutional investors routinely adjust currency hedges before multi-day trading pauses to limit exposure to international market swings.
- The TA-35 index dropped to 4,218.62 points, dragged down by energy utility shares falling 3.06% and technology stocks declining 1.77% in broad session selling.
- Defense contractor Elbit Systems bucked the market downturn, gaining 2.61% on strong international procurement demand and expanding European military export orders.
- Representative dollar-shekel exchange rates rose to ₪3.023 with spot trading reaching ₪3.048 as foreign investors moved capital into US dollar cash reserves.
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