Despite ongoing war and political isolation, Israel’s economy has shown surprising resilience. The TA-125 stock index has rebounded to record highs, and GDP growth is forecast to rise, though war costs have reached nearly $89 billion.

Jerusalem

Israel and Iran have agreed a ceasefire after a twelve day conflict. Meanwhile, Israel strikes in Gaza continue with the humanitarian crisis deepening.

Middle East Conflict

Israel's economy has demonstrated resilience despite ongoing wars on multiple fronts and increasing international isolation. The country's main stock index has rebounded significantly, and economic forecasts predict strong GDP growth in the coming years. However, the financial burden of the conflicts is substantial, with costs reaching $89 billion and a rise in national debt. The tech sector has been particularly affected by a brain drain, as thousands of workers have relocated abroad. Internationally, Israel faces divestments and potential trade penalties, while shifts in U.S. public opinion could impact future aid.

After two years of war, Israel faces economic headwinds

Wars on multiple fronts, increasing international isolation, and yet the Israeli economy appears resilient. The investors of the world, get on board now, because we're about to take off. In the immediate wake of October 7, Israel's main stock index crashed by some 23 percent. Two years later, it's at a record high, up more than 200 percent. After an anemic 2024, the OECD is now forecasting Israeli GDP growth of 3.3 percent this year and 4.9 percent for 2026, some of the highest rates in the developed world, a ceasefire with neighboring Lebanon, and the end to a relatively brief air war with Iran, a relief to investors. But those wars, and the war in Gaza, are expensive. As of August, the multi-front conflict had cost some $89 billion. The takeover of Gaza City is estimated to potentially end up costing nearly $30 billion. To help pay for it, Israel's VAT was raised by 1 percent at the start of 2025. The country's debt level, meanwhile, has gone from 60 percent of GDP to 70 percent over the past two years. The calling up of hundreds of thousands of Army reservists has not only hit productivity, but also sparked a brain drain in the critical tech sector, which accounts for 20 percent of GDP and 56 percent of exports. In the first year of the war, more than 8,000 tech workers relocated abroad. Most costly, though, may be Israel's loss of standing on the international stage. Tens of thousands of Palestinian civilians have been slaughtered in what is increasingly recognized as an ongoing genocide in Gaza. Norway's sovereign wealth fund, the world's largest, has divested from a number of Israeli firms, citing ethical standards. Meanwhile, the European Union, Israel's main trading partner, is threatening to increase tariffs on Israeli goods. We regret having to take this step. However, we believe it is both appropriate and proportionate, given the ongoing humanitarian crisis in Gaza. Israel has not yet lost its most important ally and patron, the United States, which provides some $4 billion in funding per year. But even that could change. Recent polling shows a dramatic shift in U.S. public opinion, with a majority of voters now opposed to sending Israel any more military or economic aid.

From Tel Aviv to the Nova Music Festival site, Israelis gathered to remember those who were killed in the October 2023 Hamas attack.

Tel Aviv-Yafo

Israelis remember victims two years after Hamas attack

Saudi Arabia's Riyadh Comedy Festival is attracting global stars including Dave Chappelle, Pete Davidson and Kevin Hart, with reports that some are being paid more than $1 million each. The event is part of Crown Prince Mohammed bin Salman's push to rebrand the conservative kingdom through sports and entertainment.

Riyadh

Riyadh Comedy Festival draws top U.S. comedians amid controversy

Three U.S.-based scientists have won the Nobel Prize in physics for their work on quantum mechanics. The physics award is the second 2025 Nobel Prize to be announced this week.

Stockholm

Three U.S.-based scientists win Nobel Prize in physics

As the war in Gaza reaches its two-year mark, Israel and Hamas continue negotiations in Egypt. Talks are centered on a proposed ceasefire deal, which includes a partial Israeli withdrawal from Gaza and a hostage-prisoner exchange.

Cairo

Israel and Hamas resume Gaza ceasefire talks in Egypt

Israel has deported activist Greta Thunberg along with 170 others who were detained after Israeli forces intercepted a flotilla attempting to deliver aid to Gaza last week. Some of those deported in recent days have reported mistreatment, allegations that Israel has denied.

Israel deports Greta Thunberg after Gaza Flotilla interception

Leaders in the U.S. state of Illinois are taking President Donald Trump to court, looking to stop the deployment of hundreds of National Guard troops to the streets of Chicago. The White House argues that soldiers are needed to prevent so-called lawlessness.

Chicago

Chicago declares 'ICE Free Zones' amid clashes over raids

French President Emmanuel Macron has given Prime Minister Sebastien Lecornu 48 hours to stabilize the government following his sudden resignation. Lecornu stepped down hours after naming his cabinet, amid criticism and growing political instability in a parliament without a clear majority.

Paris

Macron gives Lecornu two days to salvage government after resignation

Microchip maker AMD got a huge boost in the race to supply the artificial intelligence revolution. OpenAI, the company behind major AI platform ChatGPT, announced a deal for AMD to provide the AI startup with its high-performance processing chips starting next year.

Santa Clara

Rise of AI

AI chipmaker AMD strikes major deal with OpenAI

It's a race against time to save the remaining 200 or so stranded climbers on Mount Everest after a massive storm dumped at least three feet of snow over the weekend.

Gorakshep

About 200 Mount Everest climbers still stranded

Clashes broke out at ICE facilities in Chicago and Portland after President Trump ordered National Guard troops into both cities. The move has intensified tensions between federal authorities and local officials amid ongoing protests.

Clashes erupt as Trump deploys National Guard

Former NFL quarterback and Fox Sports analyst Mark Sanchez was charged with felony battery involving serious bodily injury, and could face up to six years in jail, according to Marion County Prosecutor Ryan Mears.

Indianapolis

Mark Sanchez charged with felony, could face up to 6 years in jail

Illinois Gov. JB Pritzker and Chicago Mayor Brandon Johnson announced on Monday a lawsuit against the Trump administration over plans to deploy the National Guard to Chicago.

Illinois, Chicago sue Trump over National Guard deployment

A selloff in French markets gathered pace after French media reports that Prime Minister Sebastien Lecornu has resigned. French stocks fell sharply, government bond yields were up 8 basis points and the euro was last down 0.65% at $1.1667.

French markets tumble after PM Lecornu resigns

Former NFL quarterback Mark Sanchez has been charged with battery, intoxication, and unlawful entry after allegedly attacking a 69-year-old truck driver in Indianapolis. The driver stabbed Sanchez in self-defense, believing his life was in danger. Sanchez is currently hospitalised.

Ex-NFL star Mark Sanchez faces criminal charges in alleged assault

U.S. President Donald Trump's battle with Democratic-led cities is heating up after 200 California National Guard troops have been reassigned to Oregon, despite a judge blocking the deployment to Portland.

Portland

Trump sends National Guard to Oregon despite court block

Israeli planes and tanks pounded areas across the Gaza Strip overnight and on Sunday, destroying several residential buildings, witnesses said, as Palestinians hoped a U.S. plan to end the war would soon ease their suffering.

Israeli strikes on Gaza continue ahead peace talks

Amenhotep III ruled between 1390 and 1350 BC and was one of the most prominent pharaohs of ancient Egypt.

Pharaoh's tomb reopened after more than 20 years of renovations

President Trump has thrust the U.S. military into a critical role deterring illegal crossings into this country at the southern border. As Charlie D'Agata reports, their presence is having unintended consequences.

Santa Teresa

U.S. military presence at southern border angers hunters, hikers

A new CBS News poll shows a majority of Americans disapprove of how President Trump and congressional Republicans and Democrats have handled the government shutdown. Willie James Inman reports on that and Mr. Trump's latest National Guard moves.

Washington

Americans fed up with shutdown, poll finds

Negotiators between Hamas and Israel will begin meetings in Cairo on Monday (October 6) for the release of the remaining 20 hostages and a prisoner swap.  There is a lot of pressure on both sides to get a deal done.

Negotiations between Israel, Hamas set to begin

Japan's ruling party picked hardline conservative Sanae Takaichi as its head on Saturday, putting her on course to become the country's first female prime minister in a move set to jolt investors.

Tokyo

Right-wing Sanae Takaichi set to be Japan's first female premier

For a second day, Israel is launching more strikes on the Strip defying demands from the U.S. to stop attacks. At least 61 Palestinians were killed in attacks across the Strip.

Israel intensifies Gaza bombardment despite U.S. pressure to stop

Israeli Prime Minister Benjamin Netanyahu says he hopes to announce the release of all the hostages being held by Hamas in Gaza in one fell swoop in the coming days.

Netanyahu: Gaza peace deal is 'close'

The government shutdown reached its fourth day on Saturday. The Senate on Friday went home after another failed vote to keep the government open. Willie James Inman has the latest.

No signs of compromise as government shutdown continues

Tensions are high in Portland, Oregon, as National Guardsmen could possibly be deployed there as early as this weekend. Federal agents and demonstrators squared off again, but Portland's mayor and chief of police say they don't need the help.

Protests in Portland as National Guard mobilizes

“I believe they are ready for a lasting peace.” the U.S president wrote on social media after Hamas announced it was willing to release the hostages and hand over power to other Palestinians.

Trump urges Israel to stop bombing Gaza after peace breakthrough

Israel slowed its Gaza offensive on Saturday after U.S. President Donald Trump demanded it stop bombing in response to Hamas saying it was ready to free hostages under the U.S. plan to end the two-year-old war.

Could the Trump deal end the Gaza war?

Sanae Takaichi has been elected as the head of Japan’s ruling Liberal Democratic Party (LDP) and is therefore likely to become the next prime minister and the first woman to lead the country.

Japan's ruling LDP elects first female prime minister

U.S. President Donald Trump has acknowledged Hamas's partial acceptance of a ceasefire proposal drafted with Israel, and ordered Israel to stop bombing the Gaza strip.

Trump orders Israel to stop bombing Gaza

The state Attorney-General says the city is violating the law by sharing license data with federal agencies. The El Cajon mayor has accused the state of 'bullying' cities.

After two years of war, Israel faces economic headwinds

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