Israeli and Egyptian stocks rise as US strikes on Iran could speed up conflict resolution

From Yahoo Finance: 2025-06-22 09:08:00

Middle Eastern stocks rose on Sunday, with Israel and Egypt leading the way as traders bet US strikes on Iran could hasten the end of conflict with Israel. Israel’s TA-35 index rose 1.5%, Egypt’s benchmark jumped 2.7%, while other markets in the region saw modest gains or declines.

Some market gains were driven by bank shares in Israel, with defense supplier Elbit Systems Inc. dropping over 2%. Market optimism is cautious due to security concerns, according to Yaniv Pagot of the Tel Aviv Stock Exchange. The risk premium for Israel has improved.

Global investors are preparing for potential market turbulence and a rush to safe-haven assets. Iran’s response, including any actions in the Strait of Hormuz or attacks on US assets, is closely watched. Market reaction will hinge on Iran’s retaliation and impact on oil supply, with the risk of regime collapse in Iran a concern.

Read more: Israeli Stocks Rise as Traders See US Hastening End to Conflict