Shares in US and European firms with exposure to Israel fell due to fears of escalation in crisis
Shares in US and European-listed companies with business exposure to Israel have fallen in recent days following the escalation in Israel’s conflict with Hamas.
Europe’s stocks fell amid fears of surging oil prices creating higher inflation. Meanwhile, shares in Israeli firms fell significantly.
Shares in Mobileye Global, Tower Semiconductors and Teva Pharmaceutical, all fell by 5% respectively.
Mobileye, a US-listed driverless car firm, has an estimated revenue of $897 million with an annual flow of trade of $258 million according to ALPS Marine.
Teva Pharmaceutical, the world’s largest generic drugmaker, has an estimated revenue of $15 billion, with an annual flow of trade of $762 million according to ALPS Marine.
Further ALPS Marine analysis shows that Tower Semiconductors, a large Israeli chipmaker, has an estimated revenue of $1 billion, with an annual flow of trade of $367 million.
Following Saturday’s attack, Israel has called up 360,000 reservists and ordered the evacuation of northern Gaza, which includes Gaza City. The city is home to hundreds of thousands of people.
The UN has estimated that 400,000 Palestinians have already been displaced since the escalation in the violence over the recent days.
Airlines have suspended flights to and from Tel Aviv in response to the escalation of the crisis.
Many analysts, speaking to Reuters, believe that many leading technology companies, many of whom are owned by US firms, will be disrupted by the escalation in the conflict.
High-tech industries account for 14% of all jobs in Israel and one-fifth of Israel’s gross domestic product, Reuters reports. Many of these firms are expected to fortify the security of their operations in the coming days, and members of their workforce will be called up to join the reservists.
Over five hundred multinationals currently operate in Israel, which include Google, Facebook, Intel, Apple and IBM. Many of these firms had bought up Israeli start-ups with the intention of using them as research and development centres.