TASE Routed as US-Iran MOU Erases Wartime Rally; TA-125 Down Nearly 11% in June
The Tel Aviv Stock Exchange suffered a brutal June, with the TA-125 down roughly 10.5% month to date and the TA-90 off nearly 11%, after the June 14 US-Iran memorandum of understanding deflated the wartime rally that had made TASE one of the world's best performers. Defense, banking, and energy names led losses, with the defense index off 25% over three months as investors priced in a smaller security premium. Israeli investors, unlike cheering Wall Street, read the Washington-brokered framework as a strategic letdown that preserves the Iranian threat rather than dismantling it. Year to date, the TA-125 remains up over 31%, a reminder that Israel's economy proved its resilience through the longest war in its history. The shekel held steady near 2.91 to the dollar, signaling that the selloff reflects repricing rather than capital flight.