Economic pressure against Israel rose significantly this morning as Bahrain, the UAE, Saudi Arabia and Egypt agreed on additional boycotts against 10 categories of Israeli goods. In an unprecedented move, Saudi Aramco decided to enforce a ban on sale of Saudi petroleum products to Israel.
The TA-25 Israeli benchmark index reacted negatively to the news, plummeting 4.5% to 5-year lows. Oil futures traded in Tel Aviv climbed 10%.
Riots erupted in Jerusalem, Tel Aviv and other major cities over the expected rise in prices and the mismanagement of the country's foreign policy by the current administration. S&P, the major credit rating agency, lowered Israel's credit rating to BBB over fears that war would deteriorate the country's historically well run fiscal policy. The IMF issued a report criticizing the current administration, expecting a large hit to the country's balance of payments.
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