(MENAFN) On Monday, the Israeli shekel experienced a notable decline, falling to 3.743 against the dollar as fears of an imminent escalation in the conflict between Israel and Lebanese Hezbollah intensified. This drop marks the most significant depreciation of the shekel in three months, compared to the rate of 3.65 shekels per dollar earlier in the session.

The depreciation of the shekel coincides with the decision by several international airlines to suspend flights to Rafik Hariri International Airport in Beirut, Lebanon. The move is a precautionary measure amid growing concerns that the regional tensions might escalate into a broader conflict. In response to the heightened risks, airlines including Lufthansa, Austrian Airlines, and Air France have announced the suspension of their services to Lebanon and Israel for varying periods, with no clear date for resumption.

The decision by these airlines and the sharp drop in the shekel reflect mounting anxiety within Israeli financial markets regarding the potential for the conflict with Hezbollah to escalate into a full-scale war. Recent statements from Israeli government officials have suggested that pursuing such a conflict might be under consideration, further amplifying market uncertainties. 

MENAFN30072024000045015682ID1108498565