Occupied Jerusalem- Israel entered into a state of economic and popular anticipation in the wake of the announcement of the Israeli attack on Iran, amid fears of the expansion of the escalation and the extension of its consequences internally.
The branches of Israeli shopping and grocery networks have witnessed long lines and a widespread advantage, with hundreds of thousands of Israelis flocked to store basic materials and emergency supplies, and the scene was repeated in Tel Aviv The major and most of the Israeli cities, where the demand for stores reached its climax on Friday afternoon, and a severe shortage of biological products such as milk, eggs, vegetables and water containers was recorded.
In parallel with the active movement in the consumer markets, economic indicators went to a disturbing path, as the shekel exchange rate recorded a sharp decline against the dollar and foreign currencies, amid investor concerns of long -term security and economic repercussions.
The Tel Aviv Stock Exchange decreased significantly, driven by the decrease in the shares of airlines and tourism after the announcement of a number of international airlines to suspend their flights to and from Israel, and the movement stopped almost completely in Ben Gurion Airport After closing the airspace.
At the same time, oil prices in global markets increased due to fears of the region’s slippage to a broader confrontation that may affect energy supplies, which in turn reflected the expectations of the cost of fuel inside Israel, which increases the potential economic burdens on citizens.
Rush
The Carrefour stores network announced a tremendous leap in its branch activity in cities, amounting to 500% compared to the normal days, as customers preferred to buy from the branches close to shopping from the discounts stores in the suburbs.
According to the network, sharp increases in demand for various products were recorded in varying proportions that reached 500%in mineral water, dry foods 400%, children’s supplies and diapers of 350%, toilet paper 300%, dairy products 200%and batteries 1000%.
Food application applications also witnessed a rise of 150% in the number of requests, and the list of required products topped milk, cheese, mineral water, tomatoes, cucumber, bread and bananas.
In addition to the food, an unprecedented increase was observed in the demand for emergency equipment, as the electricity store network recorded hundreds of thousands in the rate of selling backup, generators, and electrical lighting devices.
In light of this tense atmosphere, the “De Mac” correspondent for shopping and food affairs, Omer Tamari Lyon, says that “Israelis continue to stormed basic materials, while stores and commodities are preparing for a stage that may be longer of pressure and high demand, in a charged security atmosphere and an emergency.”
Lyon believes that these developments between popular pressure on supply and consumption networks, and sharp fluctuations in economic and financial indicators meet to form the features of a multi -faceted crisis that will have clear repercussions in the coming days and weeks, whether on the behavior of the consumer or the performance of the Israeli economy as a whole.
Sharp fluctuations
On the other hand, the foreign exchange market in Israel witnessed a turbulent day after the Israeli attack on Iran, as the shekel recorded a remarkable decline in front of foreign currencies, amid a state of anxiety and anticipation in economic circles.
However, the frequency of decline later, with the Bank of Israel announced the support of the shekel and the survival in the event of an emergency.
According to the updated data when the Israeli Stock Exchange was closed Friday, the dollar exchange rate increased by 1.2%, reaching 3.59 forms after it had exceeded 3.65 forms in the morning, and the euro rose by 0.6% to reach about 4.14 forms after it had touched 4.22, and the pound rose to about 4.86 forms, according to a report of the newspaper “Kalclast”.
The Tel Aviv Stock Exchange witnessed a remarkable decline in most of its main indicators against the background of continued security tensions and reports on the possibility of Israel’s additional imminent blow against Iran. The Tel Aviv index 125 decreased by 1.8%, while the Tel Aviv index 35 fell to the leadership shares by 1.6%, according to the newspaper “Globes”.
The vital sectors in the market were affected by the repercussions of the geopolitical conditions, as the oil and gas sector index recorded a decline of 2.6% after oil prices increased Thursday in a sharp way due to the escalation, before today witnessing a process of correction and decline in global markets.
The shares of Israeli banks incurred 2.1%losses, while the shares of insurance companies fell by 2.8%, which reflects the state of anxiety among investors from the impact of tensions on financial and credit stability in the country.
Economic alert
Commenting on these moves, Hizy Steranecht, a capital market correspondent in the newspaper “Globes”, says it reflects a mixture of caution and investment positioning in the Israeli market, as investors tend to defense sectors and reduce exposure to sensitive sectors of security fluctuations.
He explained that these moves reaffirm the extent of the fragility of the markets in front of geopolitical tensions, and the extent of the speed of its impact to the major currencies and goods, and it is likely that the attack will have negative repercussions on Israel and its markets, especially with regard to the price of the shekel, which has declined significantly.
In light of the escalation of security tensions, the Bank of Israel announced a special meeting of the Financial Stability Committee, in a move that reflects the concern about the repercussions of the current situation.
Towards a complex crisis
“The committee that includes representatives of the Ministry of Finance and Banking Supervision rarely reveals its meetings, but this time the bank chose to announce explicitly as a sign of readiness, not panic.”
Titlbjam explained that despite the silence of the meeting, the bank confirmed that it is “ready in all fields within its powers”, including ensuring the work of the financial markets, the banking system and the payment systems.
In a move that reflects the concern of the monetary authorities about the repercussions of the security situation, Titlbagum adds that the Israeli Ministry of Finance conducted urgent consultations with its senior officials, and announced its readiness for all scenarios.
Ronin Menachem, chief economist at the “Mazrah Tafahout” bank, said that the beginning of the direct confrontation between Israel and Iran is a clear turning point in market evaluation, expecting to lead to “preferring safe assets at the expense of risk assets, which may weaken the shekel in the short term and increase the fluctuations of capital and credit markets.
He adds that “while the Israeli markets interact with field developments with caution, the monetary and financial authorities appear to be in a state of alert,” ready to use all their tools to ensure financial stability in the face of one of the most sensitive days since the outbreak of the last war.