Miki Zohar Defends Netanyahu Amid Rising Political Turmoil

On June 26, Israeli Minister Miki Zohar tweeted on X defending Prime Minister Benjamin Netanyahu and condemning media narratives. He stated, “Large parts of the Israeli media… decided to take my words out of context,” insisting Netanyahu’s trial had hurt national unity. This emotional outcry came just as a fragile ceasefire between Israel and Iran took hold. Across the region, leaders claimed victory while tension simmered. In the backdrop, capital markets watched closely. Amid political turmoil, regional investors are observing the market trends and eyeing crypto as a hedge for investment. 

Political Turmoil Deepens as Netanyahu Claims Victory

In recent weeks, Benjamin Netanyahu has gone from being politically cornered to once again reshaping Israel’s national narrative. His strike on Iran is now seen by many as a strategic win. This is weakening a longtime threat and shoring up support at home. Just weeks ago, dissent within his coalition nearly brought the government down. But now, the perception of a strong stance against Iran has shifted public sentiment.

Miki Zohar said, “You won’t succeed in twisting my words to make me seem like someone who belittles,” he added. “God forbid, the events of October 7, and the public won’t buy it.” But among right-wing supporters, the belief in Netanyahu’s strength has only intensified. That dynamic is stirring both political and market instability.

Regional Instability Casts a Long Shadow on Capital Allocation

The Israel-Iran ceasefire may hold for now, but its foundations appear shaky. President Trump claimed the ‘victory’ after the NATO meeting. In Tel Aviv and Tehran, the messaging leans nationalistic, rallying domestic audiences around visions of victory. Yet for global investors, the situation looks more fragile. With political turmoil gripping Israel and surrounding countries, capital allocation is entering a phase of heightened caution. 

Foreign direct investment flows are likely to pause. TA-125 jumped more than 8% during the height of the hostilities, and the TA-90 shot up 11%, defying typical wartime expectations. The bond market initially hesitated, but within 48 hours, fixed income yields also adjusted to reflect improved sentiment.

Crypto as Hedge Gains Attention Amid Political Turmoil

One of the quiet but significant shifts in sentiment has come from the digital asset space. Investors unnerved by the unpredictability of traditional markets are increasingly eyeing cryptocurrencies as a geopolitical hedge. Analysts note increased interest in Bitcoin and Ethereum among investors from Israel and the Gulf.

This trend mirrors past behavior during other times of instability. Whenever conventional assets seem vulnerable to political forces, crypto rises as a perceived safe haven. It is not yet mainstream policy, but for high-net-worth individuals and some institutions, crypto offers an alternative. In times of political turmoil, especially when banking systems are under strain or currencies fluctuate, decentralized assets gain psychological appeal.

Markets Watch Closely as Political Turmoil Meets Regional Realignment

The Israeli public’s response to the conflict with Iran has revealed deep divisions but also strong nationalist currents. Finance Minister Bezalel Smotrich called the last two weeks a defeat of an “empire of evil.” Many in the public have echoed that belief. Yet investors know that domestic unity and international confidence are two different things. For the global economy, this moment marks a delicate balance. Political turmoil in Israel is not isolated, it intertwines with broader regional shifts and international posturing.

As tensions cool on the surface, markets remain on alert. Any sign of renewed violence or instability within Israel’s ruling coalition could ripple across asset classes. In this landscape, investors are watching more than military moves. They’re tracking tweets, courtrooms, and sentiment indicators. The intersection of regional geopolitics and capital flows is tight. As political turmoil intensifies, the next moves by leaders, courts, or central banks will decide the region’s economic direction. For now, uncertainty remains the only constant.