Israel’s currency has strengthened significantly, reaching its highest level in roughly 30 years against the U.S. dollar, as growing optimism over renewed diplomatic efforts with Iran and potential discussions involving Lebanon boosts confidence in the market.

The shekel is currently trading at NIS 3.01 per dollar, approaching the key psychological threshold of NIS 3/$, and marking its strongest position since 1995.

“There are expectations for an improvement in Israel’s geopolitical situation, along with expectations of a sharp increase in defense exports,” says Leader Capital Markets chief economist Jonathan Katz. “Meanwhile, the high-tech sector continues to raise funds abroad.”