Global market reaction to two years of war in Gaza

Group 1: Market Response - Israeli stocks and major global defense manufacturers have seen significant increases since the October 7, 2023 attacks, with defense stocks rising over 120% [2] - The MSCI Israel stocks index has increased by more than 80%, outperforming main global stock benchmarks by approximately 30 percentage points [3] Group 2: Credit Ratings - Israel experienced its first-ever credit rating downgrades in 2024, initiated by Moody's, followed by S&P and Fitch [4] - Concerns about Israel's credit status peaked during the conflict, with credit default swap markets indicating a potential downgrade to 'junk' status, although these fears have since diminished [5] Group 3: Economic Impact - The war has severely impacted Israel's economy, which is valued at $580 billion, with initial costs estimated at around 14 billion shekels ($3.75 billion) [6] - Economic growth nearly halted last year, but is projected to be 2.5% this year, with potential for over 5% growth next year if a "peace dividend" occurs [6] Group 4: Commodity Prices - Oil prices surged above $90 per barrel following the Hamas attacks, but quickly fell back to $75 by the end of 2023 [7] - Tensions with Iran caused another spike in oil prices in early 2024, which also subsided after initial escalations [8] Group 5: Safe-Haven Assets - Gold prices increased nearly 3% after the Hamas attacks, marking the largest weekly rise in six months, and have continued to rise since then [9]