Israeli shekel plummets in wake of Haniyeh assassination
Israel’s economy has already suffered significantly as a result of the Gaza genocide and the operations of the Axis of Resistance
The Israeli shekel has taken a downfall in the aftermath of Israel's assassination of Hamas’ most senior political official, Ismail Haniyeh, in Tehran early on 31 July.
Bloomberg reported on 31 July that the shekel fell 1.2 percent on Wednesday “as traders worried the killing of Hamas political leader Ismail Haniyeh on Iran’s soil raised the danger of a broader Middle East war.”
The shekel’s cumulative decline of 3.3 percent in the last three days is “the worst in the world,” second only to the recently-floated Ethiopian birr, according to Bloomberg.
Israel’s 10-year sovereign yield has risen six points to 4.99 percent. “The latest events have eroded traders’ optimism in a quick resolution,” the outlet wrote, adding that the shekel is likely headed for its worst week in two years.
Nick Rees, FX strategist at Monex Europe Ltd in the UK, said, “It is hard to see a scenario where the shekel does not continue to trade under pressure, unless and until both sides step back from the brink.”
The shekel is trading at its lowest level since April.
“Its volatility is surging too: one-month implied swings, based on options prices, have jumped for five successive days, the longest streak since November,” Bloombergadds.
The assassination of Haniyeh could also jeopardize ceasefire negotiations, previously led by the top Hamas official, essentially prolonging the genocidal war on the Gaza Strip.
The war in Gaza and the Axis of Resistance’s attacks on Israel have already had a significantly negative impact on the Israeli economy. Hebrew media reported earlier this month that 46,000 Israeli businesses have been forced to shut down due to the war in Gaza and the operations of Hezbollah, the Yemeni army, and other members of the Axis.
Following the killing of Haniyeh and the Israeli attack on Beirut the night before, which killed several civilians, including children, fears of a regional war have increased.
Israel’s attack on Beirut’s southern suburbs on 30 July was a response to the strike that killed 12 people in the occupied Golan Heights over the weekend, which Tel Aviv blamed on Hezbollah. Hezbollah has denied involvement, and many, including eyewitnesses at the scene, said an Israeli interceptor missile was responsible.
A Hezbollah official told Al Jazeera hours before the attack that the Lebanese resistance is fully prepared to respond to any Israeli escalation.
Hezbollah leader Hassan Nasrallah warned earlier this year that Israel would pay “in blood” for killing Lebanese civilians. Several settlers and soldiers have been killed by the resistance group’s operations since then in response to indiscriminate strikes on Lebanon’s south.
Over the years, Nasrallah has repeatedly warned that attacking Beirut would push Hezbollah to strike Tel Aviv.
On 2 January, a drone strike on the Lebanese capital’s southern suburbs killed Hamas chief Saleh al-Arouri. No civilians were killed, and Hezbollah responded by targeting the strategic Meron airbase in the Galilee, which it has struck several times since then.