Middle East stocks plunge as Israel pounds Gaza, declares war against Hamas

The Middle East stock markets witnessed a significant tumble following the announcement of Israel’s war declaration against Hamas. The Israeli military said that it had launched a series of airstrikes on Hamas targets in Gaza, in response to rocket attacks from Hamas on Israeli cities.

The TA-35 index, which is the benchmark stock index for Israel, fell by 7.6 per cent on Sunday, its biggest loss in more than three years, according to a report by Bloomberg. The Tadawul All Share Index in Saudi Arabia, which is the largest stock market in the Middle East, also fell by 1.3 per cent on Sunday.

Stock markets in Kuwait, Qatar, Oman, and Bahrain showed similar weakening trends in their valuation. Egypt's stock market bore its own share of the regional strain, with the EGX30 gauge receding as much as 2 per cent.

This comes after a full-fledged war broke out between the ruling Hamas militant group in the Gaza Strip and Israel and it killed at least 313 people from both sides.

According to the Israeli military, Hamas militants fired over 2,000 missiles into Israel from the Gaza Strip, while Hamas militants reached southern Israel by land, sea, and air, using paragliders. Hamas captured many Israeli soldiers near the border.

The deadly and surprise attack has killed 70 people and injured more than 600 in Israel. In the Gaza Strip side, more than 195 deaths and about 1,500 wounded have been reported in Israel’s counterattack.

Israel Prime Minister Benjamin Netanyahu declared "war" and said his country would exact an "unprecedented price" from its adversary.

Meanwhile, Prime Minister Narendra Modi posted on X, “Deeply shocked by the news of terrorist attacks in Israel. Our thoughts and prayers are with the innocent victims and their families. We stand in solidarity with Israel at this difficult hour.”

The Indian Embassy issued an advisory that gave relevant phone numbers in case of emergency and also provided URLs for Israeli Home Front Command and Preparedness brochures.

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