Israeli Prime Minister Benjamin Netanyahu’s primary coalition partners have expressed their support for a potential deal to free hostages held by Hamas, even if it necessitates altering Israel’s current Gaza war strategy.
On Tuesday, Shas, an ultra-Orthodox Jewish party with 11 seats in Israel’s 120-member parliament, announced its backing for the hostage deal. This follows similar support from Yitzhak Goldknopf, leader of United Torah Judaism, which holds seven seats in the coalition. “Our position is that there is nothing greater than the value of life and the commandment to redeem captives, because their lives face a real and present danger,” Goldknopf, Israel’s housing minister, said in a statement.
Shas echoed this sentiment, emphasizing a religious obligation to support the deal. The party encouraged Netanyahu and his war cabinet to “withstand all pressures for the end of returning the hostages.” Together, these parties control 18 of the 72 seats held by Netanyahu’s expanded emergency government, potentially countering opposition from far-right coalition partners.
The deal’s critics, particularly the Jewish Power party led by National Security Minister Itamar Ben-Gvir and the Religious Zionism party led by Finance Minister Bezalel Smotrich, control 13 seats. They have threatened to exit the government if the deal is pursued, fearing it would impede efforts to defeat Hamas. Netanyahu has maintained that Israel’s war efforts will not cease until Hamas is toppled and disarmed, while Hamas demands an end to the Israeli offensive as a condition for any deal.
The Israeli public, initially united in support of the war following Hamas’s cross-border attacks on October 7, has shown signs of concern for the 120 remaining hostages, more than a third of whom are feared dead. A poll by public broadcaster Kan revealed that 40% of Israelis support the U.S.-backed ceasefire proposal introduced by President Joe Biden, with 27% opposed and 33% undecided.
The poll also indicated mixed feelings about the war’s outcome, with 40% believing a ceasefire deal would end the conflict, 34% predicting a resumption of fighting, and 26% uncertain. Additionally, 32% of respondents were confident in Israel’s ability to topple Hamas, while 42% were not, and 26% remained undecided.
Market Implications and Investment Opportunities
Short-Term Market Reactions: The announcement of potential support for a ceasefire and hostage deal could stabilize regional markets, reducing geopolitical risks. This stability may provide short-term investment opportunities in Israeli and regional stocks, particularly those in sectors affected by the conflict.
Long-Term Market Impact: A successful deal and subsequent ceasefire could lead to long-term economic growth and stability in the region. Infrastructure and reconstruction companies, as well as humanitarian organizations, could see increased demand, presenting lucrative long-term investment prospects.
Strategic Diversification: Investors should consider diversifying their portfolios with a mix of assets that can benefit from regional stability and potential economic recovery. This approach includes investments in infrastructure, technology, and consumer goods sectors that could thrive in a post-conflict environment.
Leave feedback about this