Tel Aviv Stock Exchange hits lowest level since April low amid war fears

JERUSALEM

The main index of the Tel Aviv Stock Exchange (TASE) fell to its lowest point since April at the start of weekly trading on Sunday, driven by fears of a potential war with Hezbollah and Iran.

In early trading, the TASE 35 index dropped 2.3% to 1,937 points, marking its lowest level since the last week of April, according to the Tel Aviv Stock Exchange.

The poor performance of Wall Street indices on Friday further exacerbated the negative start for the Tel Aviv Stock Exchange, which has been under pressure since mid-July due to escalating tensions with Hezbollah and Iran.

The TASE 35 Index, also known as the TA-35, is a stock market index that tracks the performance of the 35 largest and most traded companies listed on the Tel Aviv Stock Exchange in Israel.

Tensions are running high amid speculation that Iran is preparing a military response to the assassination of Hamas political leader Ismail Haniyeh bigger than the one following an April attack on Iran’s Consulate in the Syrian capital Damascus.

Haniyeh was assassinated on Wednesday in Tehran, Iran’s capital. While Hamas and Iran accused Israel over the killing, Tel Aviv has not confirmed or denied responsibility.

The assassination came a day after Hezbollah commander Fuad Shukr was killed in an Israeli airstrike in Beirut.

Hamas and Iran have vowed to retaliate for Haniyeh's assassination, while Hezbollah has pledged to respond to Shukr's killing.

*Writing by Ikram Kouachi in Ankara