Israel’s markets are still sending a very clear signal as investors are pricing in confidence, not fear. The Tel Aviv Stock Exchange has kept pushing to fresh highs, with the blue-chip TA-35 closing at another all-time record this week after a 2.64% jump, while the broader TA-125 also remains near historic peaks.

The currency move is just as striking. The shekel has strengthened to roughly 3.05 to the dollar, with market data showing USD/ILS around 3.045 on April 1, one of its strongest levels in decades and near the 30-year highs analysts have been watching. Over the last 12 months, the shekel is up nearly 18% against the dollar.

This rally did not come out of nowhere. Reuters reported that Israeli shares and the shekel had already surged after the U.S.-Israeli strikes on Iran, with the TA-35 and TA-125 hitting all-time highs as investors bet Israel’s risk premium could fall, growth could improve, and future rate cuts could become more realistic. Reuters also noted the shekel had appreciated nearly 20% against the dollar over the prior year.

What makes this more dramatic is the contrast with the war period itself. Instead of collapsing under pressure, Israeli markets have increasingly traded on expectations that the country emerges stronger strategically and economically. That is a powerful story for both local confidence and foreign capital — and right now, the screens are reflecting it.