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Israel's Stocks Are Soaring with Iran War
(Wall Street Journal) David Wainer - Iranian ballistic missiles are falling in Tel Aviv and Haifa. Israel's main airport is shut. Much of the workforce is moving in and out of bomb shelters. Yet Israeli markets are buoyant, outperforming the world. Israeli stocks have been posting solid gains. Partly this can be explained by the familiarity of local investors with war. But markets are also signaling renewed confidence in Israel's position and strategy - and Donald Trump's decision to strike Iran's nuclear sites has only strengthened that perception. Despite mass mobilization of reservists and fighting on several fronts, Israel's economy has remained remarkably resilient since the Gaza war began nearly two years ago. The economy is still growing, and unemployment remains near multidecade lows of around 3%. It appears investors are betting that Israel's strikes on Iran will deal a crippling, if not decisive, blow to Tehran's regional axis. Israel's military actions have reduced what investors call its risk premium, or the amount that geopolitical risks are priced into its assets. That could pave the way for more foreign investment once the dust settles, says Rafael Gozlan, chief economist at IBI Investment House in Tel Aviv.