On Monday, March 2, 2026, the Tel Aviv Stock Exchange (TASE) experienced a massive surge, with the flagship TA-125 index hitting an all-time high. While various reports cited different intraday peaks, the index was up as much as 8.65% during the session, eventually settling at a record close.
This historic rally was primarily driven by a “de-risking” sentiment following major military developments over the weekend.
Market Performance Highlights
| Index / Asset | Peak Change (Mar 2) | Status |
| TA-125 Index | +8.65% | Reached a record high near 16,160 |
| TA-35 (Blue-Chip) | +4.5% | Led by defense and financial sectors |
| TA-Insurance | +9.7% | Top performing sector of the day |
| Israeli Shekel | +0.3% | Trading around 3.12 per USD |
Key Drivers of the Rally
The surge is being characterized as a “relief rally” by analysts at firms like Leader Capital Markets.
1. US-Israeli Strikes on Iran
The primary catalyst was the joint US-Israeli operation (“Roaring Lion”) against Iranian military and nuclear infrastructure. Investors perceived the destruction of these facilities as a “game-changer” that significantly reduced the long-term threat of a nuclear-armed Iran, thereby lowering Israel’s overall geopolitical risk premium.
2. Reduced “War of Attrition” Fears
Market sentiment improved on indications that the Trump administration is seeking to avoid a prolonged regional conflict. The successful interception of retaliatory Iranian missiles over the weekend further boosted confidence in Israelโs defensive resilience.
3. Sectoral Outperformance
- Defense: Companies like Elbit Systems (+3.9%) rose as the conflict highlighted the demand for advanced interception and strike technologies.
- Finance: Banking and insurance stocks (such as Harel and Clal) soared nearly 10%, as the stronger shekel and reduced security risk improved the outlook for domestic credit and assets.
- Energy: NewMed Energy (+10%) jumped amid expectations that a weakened Iran would stabilize regional gas export routes to Europe and Egypt.
The “Monday-Friday” Context
Notably, this is one of the first major “geopolitical shocks” handled under the new TASE trading schedule. As of January 2026, the Tel Aviv exchange shifted to a MondayโFriday work week (from the traditional SundayโThursday) to align with global markets, which allowed local traders to react in sync with international opening bells today.
“A much weakened Iran is positive for Israel… the joint operation improves the geopolitical outlook greatly.” โ Jonathan Katz, Macroeconomist


