Tel Aviv, March 7, 2026, 10:26 (GMT+2)
- TA-35 tacked on roughly 5.5% for the week. TA-125, meanwhile, notched a gain of about 6.3%, both figures measured from Friday close to Friday close.
- Defence and energy shares led gains; banks logged only slight increases.
- The shekel stayed steady. Investors continued to watch the Strait of Hormuz situation and what it could mean for inflation.
The TA-35 in Israel pushed higher last week, with investors holding onto energy and defense stocks amid escalating tensions with Iran and continued oil market swings. Friday’s close saw the TA-35 settle at 4,356.68, marking a 5.5% jump since Feb. 27. The TA-125 also advanced, ending at 4,329.54—up 6.3% in the same period.
Right now, it’s notable because Tel Aviv has broken away from the risk-off mood that swept through global equity markets after oil’s jump and renewed worries over inflation and growth. U.S. and European stocks both closed out the week in the red, Reuters reported in its global markets wrap.
Energy’s the pivot here. Reuters’ “Take Five” points out that oil is up close to 20% since Israel and the U.S. hit Iran back on Feb. 28. European natural gas? That’s surged nearly 60%. The spike feeds straight into inflation expectations and how markets price interest rates. Reuters
Energy and defense names dominated on the Tel Aviv Stock Exchange this week. The TA-Oil & Gas index surged to 3,582.17 by Friday’s close—a 15% jump since Feb. 27. The TA Defense index clocked in at 5,477.12, up about 12% for the week. Banks lagged: the TA-Banks5 index posted a little over a 1% gain.
Elbit Systems grabbed the spotlight this week, vaulting past Teva and Israel’s top banks to claim the exchange’s highest market capitalization. The Times of Israel pegs its value at around 123 billion shekels ($40 billion), following a near 45% surge in its shares since the start of the year.
Friday’s session ran calm. The TA-35 inched up just 0.02% by the end, with oil and gas names, real estate, and banks offsetting some scattered selling, Investing.com’s summary showed.
This week’s action included notable swings among tech and travel-related stocks. NICE surged 5.8% Thursday, Delek Group wasn’t far behind, up 5.7% on the TA-35. Teva, though, slipped roughly 2%, according to Investing.com.
The Bank of Israel’s daily reference rate showed the dollar at 3.0770 shekels on March 6, nudging higher for the day but leaving the shekel relatively strong compared to its performance in recent periods.
Oil remains the wild card here. Goldman Sachs flagged a real chance that prices could top $100 a barrel next week if the Hormuz disruption drags on, warning too that refined products might even push past the 2008 and 2022 peaks should those flows stay constrained through March.
Physical flows are still tight. Saudi Aramco is sending more barrels through the Red Sea, but according to Reuters, traders and ship brokers say there’s only so much the route can handle, with security issues also a concern. “Shippers are struggling to find tankers in proximity to Yanbu,” Rystad Energy’s Janiv Shah said on a call. Reuters
But the bullish scenario isn’t bulletproof. Extended energy turmoil has the potential to quickly upend the macro picture. Reuters noted that global bond markets slid this week, with traders bracing for increased inflation risk stemming from the Middle East conflict—a move that can ratchet up financial pressure, central banks aside.
Some investors see Tel Aviv’s steady performance as a sign the market has adapted to trading during conflict—up to a point. “If the perceived risk decreases, that’s obviously good news,” economist Yossi Spiegel told Le Monde. But he cautioned, a broader escalation could shake that confidence. lemonde.fr
