Despite ongoing military conflict with Iran, Israeli stock markets have reached record highs, with the TA-125 index climbing past 2,940 points and registering a 21% gain year-to-date.

Key contributors to this surge include defense companies like Elbit Systems, whose stock has soared 116%.

Analysts attribute the market's performance to factors such as Israel's military advances, U.S. support, and investor confidence in the country's economic resilience.

The Israeli shekel has also strengthened, reaching its highest level against the dollar in over two years.