Israeli assets plummeted as expectations of the peace talks and the red dividends of years of war evaporated.

This month, the Israeli stock market and currency have become the worst performing assets globally. The Israeli benchmark index TA-35 has plummeted over 12% this month in US dollars, marking the biggest drop among major global stock indices. In terms of percentage, the sell-off in June is set to be the most brutal month since October 2023, when Hamas launched attacks on Israel, sparking a devastating war in the Gaza Strip. Despite the intense regional conflict lasting almost three years, Israeli assets had surged significantly as investors bet on Israel achieving a safer environment, driving its economic growth. From November 2023 to early this month, the Shekel has appreciated 42% against the US dollar, making it the best performing currency globally. The Israeli stock market had almost quadrupled, surpassing the KOSPI index of South Korea and ranking just below Ghana globally. However, these gains are now narrowing. Since Iran and the US began negotiations, the Israeli Shekel has fallen around 5% in June, marking the biggest drop among global currencies. One of Israel's largest banks, Hapoalim Bank, stated that the agreement being reached between the US and Iran is perceived by local investors as failing to improve Israel's long-term security situation. It is far from meeting the high expectations set during the initial stages of military action against Iran.