Israeli stock and bond markets faced a severe downturn, responding to the unprecedented attack by Hamas gunmen from Gaza. The key Tel Aviv share indices, witnessed a significant drop, with banking shares leading the decline as well. Simultaneously, government bond prices experienced a 3% fall, marking the market’s initial reaction to one of the bloodiest attacks on Israel in decades.
Delta Air Lines and United Airlines have canceled flights to and from Israel, and Air India has suspended services until October 14. This has prompted smaller carriers like Arkia and Israir to operate rescue flights, albeit with potential schedule reductions due to challenges faced by foreign crew members.
In addition to aviation, the logistical channels, both by air and ocean, are expected to face disruptions for the unforeseeable future. For now, the port of Haifa is working normally. The port of Asdod is working is being looked at on a daily basis. Everythings is on alert basis and the situation is subject to quick changes, according to our source in Israel.
The Israeli government, recognizing the economic challenges ahead, has directed ministries to swiftly allocate budgets to manage the war. However, the Bank of Israel, while acknowledging the uncertainty, refrained from assessing the economic damage at this early stage.
In the midst of this crisis, Israel’s Manufacturers’ Association reassured the public that factories would continue operating to prevent shortages of essential products. Despite the emergency conditions, the association emphasized Israel’s production independence, ensuring that citizens will lack nothing.
The situation is fluid, and the economic fallout is likely to unfold in the coming days. As the nation grapples with the aftermath of this tragic event, the resilience of its economy will be put to a stern test.
