Israeli Stocks Rise to Record After Trump Unveils Gaza Plan

Israeli stocks rose to a record high, cementing their fifth successive quarterly rally, as investors bet that a 20-point plan agreed to by Prime Minister Benjamin Netanyahu and US President Donald Trump could hasten the end of the war in Gaza.

The rose for the third time in four days, on course for a 6.7% surge this quarter. Tuesday’s gains were led by Teva Pharmaceutical Industries, Phoenix Financial Ltd. and Bank Hapoalim. Three out of every four stocks on the gauge rose, and trading volumes were 47% higher than the 100-day average.

Investors have loaded up on Israeli stocks since April as a weak dollar and US policy uncertainty drove money managers to diversify into global assets, including emerging-market equities. The country’s broad mix of stocks spanning technology, defense equipment and the financial sector helped it leverage interest in those sectors. Along the way, Israeli assets have defied successive escalations in the Gaza war and conflict with Iran.

“Anything that might draw the war to a close is positive for Israeli asset prices,” said Hasnain Malik , the head of EM equity and geopolitics strategy at Tellimer. “The big questions on this peace plan are whether Hamas will accept what amounts to an ultimatum to surrender and whether the ultra-Orthodox parties in Netanyahu’s coalition will accept what they might interpret as the first steps towards a two state solution.”

Trump’s was developed without the direct involvement of Hamas. It sets an ultimatum for the group to release hostages, give up arms and surrender — or face the full force of the Israeli military with US backing. It also includes an offer of amnesty to Hamas operatives who hand over their weapons and commit to coexistence. Hamas said that it would need to study the proposal.

Israel’s equity benchmark has jumped 46% in dollar terms so far this year, the 11th best performance across 90-odd national indexes tracked by Bloomberg.

While stocks echoed investor optimism over the Trump plan, Israel’s currency remained subdued on Tuesday, after a rally that took it to a three-year high on Monday. The nation’s bonds, however, joined Tuesday’s gains after the London market’s open. Dollar debt due March 2034 was among the 20 best performers in emerging markets, with at least 14 other Israeli securities posting an advance.