Bezalel Smotrich attacks Israeli judiciary amid election market concerns

Israeli Finance Minister Bezalel Smotrich has launched a sharp critique of the country's judiciary, warning that court interventions in security decisions could lead to the return of displaced residents and ‘open the doors to Hezbollah elements.’ Speaking at a conference, Smotrich argued that security matters should remain the sole responsibility of elected officials and the military, rather than being subject to judicial rulings. He expressed a refusal to cooperate with certain court petitions, specifically regarding the evacuation of refugee camps in the West Bank.

Simultaneously, upcoming Knesset elections are creating economic uncertainty within Israeli markets. An economic study analyzing election cycles since 2003 indicates that the Tel Aviv 125 index tends to decline by an average of 5.3% in the months preceding elections that fail to produce a decisive political outcome. Investors are increasingly weighing the risks of political deadlock and the potential continuation of Benjamin Netanyahu’s government, particularly regarding the controversial judicial reform plans that previously impacted market stability.