Israel shekel declines after talk of expanding the war in Lebanon

The Israeli shekel continues to decline, falling 0.6 per cent against the dollar to 3.71 shekels yesterday. This comes after Prime Minister Benjamin Netanyahu said Israel is ready to take “very strong action” against Lebanon’s Hezbollah.

His statement was made during a tour of the border with Lebanon, in which he said that Israel is ready for strong action on the northern front.

According to Israel’s Calcalist, investors in the Israeli market continue to monitor the security situation on the Palestinian-Lebanese border after Hezbollah rockets set fire to large areas of Kiryat Shmona in northern Israel.

This tension led to a decline in the Tel Aviv Stock Exchange index by 35 points.

The Israeli occupation and Hezbollah have been exchanging fire since Israel launched a bombing campaign in Gaza in October 2023. The situation has intensified with fears of an all out war being launched.

The ongoing escalation between the occupation and Hezbollah is considered the worst since the 2006 war between them and has prompted tens of thousands of people on both sides of the border to flee.

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