Israel shekel gains 0.7% vs USD after Israel-Iran ceasefire announcement

Israel shekel gains 0.7% vs USD after Israel-Iran ceasefire announcement

In a significant development, the Israel shekel (USDILS) has gained 0.7% against the US dollar (USD) following the announcement of a ceasefire between Israel and Iran. This news comes amidst ongoing tensions between the two countries, which have seen escalating military strikes and retaliations over the past week.

The ceasefire was brokered by US President Donald Trump, who claimed that Iran and Israel had agreed to a phased ceasefire. The ceasefire is set to start Tuesday morning in the region and be fully in place within 24 hours. While Israel did not immediately acknowledge the ceasefire, Iran publicly denied any such agreement, stating that there was "no agreement" on a ceasefire or cessation of military operations [2].

The ceasefire announcement has had a positive impact on the Israeli financial markets. The Tel Aviv blue-chip index (TA125) hit a fresh record high, reflecting investor confidence in the country's economic stability despite the ongoing conflict. This trend is in contrast to the broader Latin American markets, which have been muted due to the escalating tensions and the absence of central bank meetings [1].

The Israeli currency's appreciation is a notable development, as it comes amidst a period of global uncertainty and economic volatility. The shekel's gain against the USD is a reflection of investors' optimism about the potential resolution of the conflict and the stability it brings to the region.

The ceasefire announcement has also had implications for global oil prices. The price of oil fell sharply to its lowest in more than a week on Tuesday, following Iran's announcement of a blockade on the Strait of Hormuz. This vital waterway accounts for one-fifth of the world’s oil consumption, and any disruption to its flow could have significant economic consequences [2].

Investors are closely monitoring the situation, as the ceasefire's sustainability and the potential for further escalation remain uncertain. The conflict has already led to significant losses in both human and material terms, with 974 Iranians, including 387 civilians, killed, and 24 people dead in Israel [2].

In conclusion, the Israel shekel's gain against the USD is a positive sign for the Israeli economy, reflecting investor confidence in the ceasefire's potential to stabilize the region. However, the situation remains fluid, and further developments could impact the financial markets and global oil prices.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3SM0I9:0-latin-american-currencies-slide-on-iran-israel-jitters/
[2] https://www.business-standard.com/world-news/donald-trump-claims-iran-israel-ceasefire-tehran-denies-oil-prices-125062400221_1.html