Israel’s stock markets leapt sharply Thursday morning after U.S. President Donald Trump announced that Israel and Hamas had signed the first phase of a ceasefire deal that would lead to hostage releases.
By mid‑morning, the TA‑35 index had jumped about 1.7 percent, the TA‑90 surged nearly 3 percent and the TA‑125 rose by more than 2 percent. Gains were led by construction and real estate stocks, with the TA Construction index climbing nearly 6 percent, and the TA Real Estate index up over 4 percent.
In contrast, shares of defense firms — which soared earlier in the war — fell on the news. Arotech Industries plunged more than 4 percent, Aerodrom dropped nearly 4 percent and Elbit Systems declined about 2 percent. Airline stocks also slid amid expectations of renewed competition as foreign carriers return to Ben Gurion Airport: El Al was down about 4 percent and Israir fell 3 percent.
The shekel also strengthened substantially. The dollar traded around ₪3.24, a three‑year low after the representative rate stood at 3.27 yesterday. The euro traded near ₪3.79, down from yesterday’s 3.81.
"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.”
Orry Tuval, CEO of Tuval Investment House and chairman of hedge fund Almenda Capital, told Ynet: “The shekel‑dollar rate is a barometer of capital markets risk. If we see a full deal leading to a regional settlement with Saudi Arabia and other Arab states, the dollar rate could plunge toward 3 shekels or even below. A low dollar rate curbs inflation and would help Israel’s central bank cut rates faster and more."