Israel markets see upside in Netanyahu defeat after three-year rally

Israeli financial markets have shown significant growth despite ongoing regional conflict, with investors speculating on potential gains should Prime Minister Benjamin Netanyahu lose the upcoming election. Opinion polls indicate a tight race between Netanyahu's Likud bloc and an opposition alliance led by Gadi Eisenkot.
Why it matters
The outcome of the Israeli election could significantly impact regional geopolitical stability and the future trajectory of the nation's robust stock market performance.
Israel markets see upside in Netanyahu defeat after three-year rally left Representational image. Getty Images/iStockphoto Getty Images/iStockphoto https://th-i.thgim.com/public/news/national/92rgzw/article71625576.ece/alternates/FREE_1200/iStock-2270287840.jpg Mohamed Nadheem US dollar bills are fanned out against the Israeli flag on a world map, representing the strong economic and strategic ties between Israel and the United States, including financial aid and trade. Opinion polls point to a tight contest, with neither Mr. Netanyahu's ruling Likud bloc nor an opposition alliance centred on former military chief Gadi Eisenkot expected to secure the 61 seats in the 120-seat Knesset needed to govern JERUSALEM/LONDON Israel's markets have soared despite three years of war and political turmoil, but some investors see further upside if the Opposition defeats Prime Minister Benjamin Netanyahu in Tuesday’s (October 27, 2026) election, potentially easing regional tensions and political risk. Opinion polls point to a tight contest, with neither Mr.
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