The Israeli shekel surged early Thursday following U.S. President Donald Trump’s announcement that Israel and Hamas had signed the first phase of a deal to end the war in Gaza, a breakthrough that includes the release of all hostages.
The dollar was trading at 3.24 shekels, a three-year low, after the Bank of Israel’s official rate was set at 3.27 the previous day. The euro also slipped, trading around 3.77 shekels compared to its previous official rate of 3.81.
Trading at the Tel Aviv Stock Exchange was set to begin at 10 a.m. local time and was expected to react positively to what appears to be the imminent end of the two-year-long war. Due to the Sukkot holiday, trading will close early at 2:30 p.m.
"I am very proud to announce that Israel and Hamas have both signed off on the first Phase of our Peace Plan," Trump wrote on Truth Social.
"This means that ALL of the Hostages will be released very soon, and Israel will withdraw their Troops to an agreed upon line as the first steps toward a Strong, Durable, and Everlasting Peace. All Parties will be treated fairly! This is a GREAT Day for the Arab and Muslim World, Israel, all surrounding Nations, and the United States of America, and we thank the mediators from Qatar, Egypt, and Turkey, who worked with us to make this Historic and Unprecedented Event happen. BLESSED ARE THE PEACEMAKERS!"
Prime Minister Benjamin Netanyahu announced that his government would convene later Thursday to formally approve the agreement, specifically the release of Palestinian prisoners as part of the deal.
“I thank the heroic soldiers of the IDF and the entire security apparatus, whose bravery and sacrifice brought us to this day,” Netanyahu said. “I thank, from the bottom of my heart, President Trump and his team for their mobilization for the sacred task of releasing our hostages. God willing, we will continue together in order to achieve all our aims and expand the peace with our neighbours.”