Netanyahu under pressure in Israel after being sidelined from US-Iran agreement
Israeli Prime Minister Benjamin Netanyahu is facing mounting domestic pressure after being cut out of the US-Iran agreement. Coalition fractures are deepening and the opposition is calling for early elections. The Tel Aviv stock index (TA-125) closed 1.8% lower.
Israeli Prime Minister Benjamin Netanyahu is facing serious domestic political pressure after being shut out of the 14-point memorandum signed between the United States and Iran at Versailles. Al Jazeera reports that far-right coalition partners Itamar Ben-Gvir and Bezalel Smotrich have called the deal "a betrayal of Israel's strategic interests" and have begun collecting signatures for a no-confidence vote in the Knesset.
Opposition leader Yair Lapid and former prime minister Naftali Bennett held a joint press conference calling for early elections. Lapid said "Trump's decision to sideline us is proof of Netanyahu's failure to manage relations with Washington". Some 65,000 people gathered at Tel Aviv's Habima Square on Tuesday night. A civil-society coalition led by Hagai Levine has restarted weekly protests under the banner of the "Movement for Democracy".
Financial markets reacted. The Tel Aviv TA-125 closed down 1.8% at 2,180. The Israeli shekel (NIS) weakened to 3.84 against the US dollar. Bank Hapoalim and Bank Leumi shares were down 2-2.4%. JPMorgan analyst Dan Aharon said "political uncertainty" was likely to soften Israel's 2027 growth outlook.
Read next
Iran's rial rebounds and Tehran stocks soar, but everyday prices still bite hard for households
Al Jazeera Economy reports the Iranian rial has rallied against the dollar and Tehran's stock exchange has surged 12% after the framework agreement with Washington. However, supermarket prices for staple food and medicines in the capital have not eased significantly in the short term. Iranian economists say the macro improvement will take weeks to feed through to consumer baskets.
US-Iran deal leaves core sticking points unresolved as $300 billion question takes shape
New Zealand regional airline Originair posts 'horrific' year as jet fuel surge bites
Philippines central bank lifts policy rate to 6.75% to rein in inflation surge
No Taiwan call and no new arms sales: how Trump is preparing to welcome Xi to Washington
