June 20, 2025: Iran Israel Stock Exchange– In a stunning display of market resilience, the Tel Aviv Stock Exchange (TASE) surged more than 4% on Thursday, even after suffering a direct missile strike amid a major Iranian assault on Israel. The escalation marks one of the most intense military exchanges between the two nations in recent years, following Israel’s June 13 airstrikes on Iranian nuclear infrastructure.
Iranian Missile Barrage Hits Israeli Cities
Iran launched dozens of ballistic missiles at key Israeli cities, including Tel Aviv and Be’er Sheva. The TASE building itself was among the targets hit, sustaining significant structural damage, according to reports from Al Jazeera and local media outlets. A hospital in southern Israel was also struck, with Israel’s emergency services reporting at least 32 people injured in the attacks.
Despite the physical damage and widespread concern, traders at TASE appeared undeterred. The exchange’s main index closed up 4.26% intraday, reaching 6,311, marking a 52-week high. Since the outbreak of this latest military escalation, the index has gained nearly 14%, or 800 points.
Israeli Response: Operation Rising Lion
The missile attacks came in response to “Operation Rising Lion,” a large-scale Israeli airstrike campaign on June 13 targeting Iranian nuclear facilities, missile production sites, and top military personnel. Explosions were reported in Tehran and at the Natanz uranium enrichment plant, a focal point of Iran’s nuclear program.
In a video address, Israeli Prime Minister Benjamin Netanyahu stated, “We are at a decisive moment in Israel’s history,” and vowed that Tehran would “pay a heavy price” for its aggression, including the hospital strike.
Unconfirmed High-Level Casualties in Iran
Citing Israeli media, notably Channel 12, unconfirmed reports suggest that Iran’s Armed Forces Chief of Staff Mohammad Bagheri and several senior nuclear scientists may have been killed in the Israeli strikes. Iran has yet to publicly confirm any such casualties.
Iran Warns U.S. Against Involvement
In a strongly worded statement, Iranian officials warned the United States against any military involvement, declaring that “all options are on the table” should Washington intervene. The warning underscores the risk of a broader regional war, with the potential to destabilize global markets and energy supplies.
Markets Show Surprising Optimism
Despite the high geopolitical tension, analysts point to several factors behind the stock market’s rally:
- Investor perception that escalation will remain contained.
- Strong performance in defense, cybersecurity, and energy sectors.
- Confidence in the Bank of Israel’s preparedness to stabilize financial conditions if needed.
- National sentiment rallying around the government and military.
“This is an extraordinary show of resilience,” said Dana Regev, a financial analyst in Tel Aviv. “While the situation remains volatile, the markets seem to be betting on Israel’s ability to manage the crisis both militarily and economically.”
Outlook
While the TASE’s sharp rebound reflects confidence, the outlook remains deeply uncertain. A potential U.S. response, confirmation of high-level Iranian casualties, or further cross-border strikes could still trigger significant volatility. For now, however, the Israeli markets appear to be defying the logic of war.