The Tel Aviv Stock Exchange (TASE), Israel's only public stock exchange, has been hit by missile strikes amidst escalating conflict between Israel and Iran on Thursday, June 19, 2025. The building sustained extensive damage, according to multiple reports. This attack marks a significant development in the ongoing tensions, directly impacting Israel's financial infrastructure.

The Tel Aviv Stock Exchange plays a crucial role in the Israeli economy. It facilitates the trading of securities and the raising of capital and debt for companies and the government within the Israeli capital market. Trading is conducted through its members, which include major banks and investment houses. The TASE lists hundreds of companies, corporate bonds, government bonds, and various index-tracking products and mutual funds.

While initial reports indicated a potential crash following the missile strike, the Tel Aviv Stock Exchange actually surged to a 52-week high, demonstrating resilience despite the escalating geopolitical strain. The TA-125 index and TA-35 index also saw gains. Finance Minister Bezalel Smotrich hailed the stock market reaction as proof of Israel's economic resilience, calling for further investment in the Israeli economy and stock market.

The attack on the TASE is part of a broader exchange of fire between Israel and Iran. In response to the missile strikes, Israeli Prime Minister Benjamin Netanyahu has vowed that Tehran would "pay a heavy price". The Israel Defense Forces (IDF) have reportedly carried out strikes on multiple military sites in Tehran, targeting weapons production, centrifuge production, and research and development sites related to Iran's nuclear weapons program.

The ongoing conflict has broader economic implications for Israel. Military spending has surged, and the economy shrank significantly in late 2023 due to the mobilization of reservists. Credit rating agencies are also considering further downgrades, which would increase borrowing costs for Israel. The current war may cost Israel an estimated $400 billion in lost economic activity over the next decade, threatening Israel's economic future.

The international community is closely monitoring the situation. The conflict has already sent ripples through global markets, causing a spike in oil prices due to concerns about disrupted supply through the Strait of Hormuz. The Strait of Hormuz is the world's oil superhighway, which conveys a large amount of global seaborne crude through a narrow bottleneck off Iran's coast.