Tel Aviv stock exchange closes at record high following outbreak of Iran War

The NIS also strengthened 1.5 per cent against the US dollar, taking it close to a 30-year-high, with some analysts suggesting the surge was caused by investors predicting that the war would reduce the long-term threat of instability in the region.

Commenting on the market’s performance, Sarit Steiner, senior portfolio manager at Peilim, told Globes: “There is a very strong sense among the public of success, at least in the first phase of the campaign.

"Given the price levels, the Israeli market is currently more attractive for investment than the US market. After the war, assuming that the results remain good, Israel's macroeconomic data will continue to improve and even accelerate.

"The markets in Israel and the US are no longer trading at the comfortable pricing levels of the past, but there are still opportunities in sectors and specific stocks that have not yet reached their potential.”

Steiner also suggested that, “assuming this is a successful campaign for Israel,” it could see the country’s credit rating upgraded.

And she predicted that Israel could become even more attractive to investment given the, in her assessment, weakening of the US’ economic forecasts.

"The high multiples in the technology sector, and also the massive investments in AI, will not justify themselves economically in the near term, as well as 'sticky' inflation that could delay interest rate cuts,” said Steiner. “When you neutralise the AI sector, growth in the US economy looks much more moderate.”