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Israel’s currency has surged to its strongest level against the U.S. dollar in three decades, an extraordinary development given the ongoing regional turmoil that has gripped the country since October 7, 2023.

Since the beginning of May, the exchange rate has hovered around 2.85 shekels per dollar, a dramatic rise from the roughly 4 shekels per dollar seen in October 2023. The shekel has also strengthened sharply against the euro, with one euro falling from 4.34 shekels in October 2023 to approximately 3.39 shekels in May 2026.

The sharp appreciation comes as Israel’s broader economic data continues to outperform expectations. The Bank of Israel is projecting economic growth of 3.8% for 2026, inflation dropped to 1.9% in March, and unemployment has remained relatively low at 3.2%.

For Israeli consumers, the stronger shekel carries significant benefits. Imported goods become cheaper, particularly energy products purchased in dollars, while overseas travel has become far less expensive for Israeli families. At the same time, however, the strengthening currency has placed growing pressure on exporters — especially Israel’s technology sector — since Israeli products and services become more costly in foreign markets.

According to the Bank of Israel, several developments have contributed to the shekel’s rapid climb. The ceasefire in the Middle East helped calm investor fears, lowered the perceived risk attached to Israeli assets, and encouraged foreign capital to flow back into the country. In addition, the weakening of the dollar, tied in part to President Trump’s economic policies, has naturally boosted other global currencies, including the shekel.

Economists also point to another major driver behind the rally: the American stock market. Israeli pension funds maintain large investments in U.S. equities and often hedge currency exposure by selling dollars and purchasing shekels. As Wall Street continues climbing, those hedging transactions have accelerated, further strengthening the Israeli currency.

Between August 2025 and February 2026, those currency-hedging activities are estimated to have involved roughly $23 billion in additional transactions. Economist Alex Zabezhinsky estimated that this factor alone may account for as much as 40% of the shekel’s recent gains.

The dramatic rise in the shekel is now creating growing pressure on policymakers at the Bank of Israel. Business leaders and exporters have increasingly urged the central bank to lower interest rates in an effort to weaken the currency and provide relief to Israeli companies competing overseas.

For now, however, the Bank of Israel has kept its benchmark interest rate at 4% — still higher than rates in both the United States and the eurozone — a policy that continues attracting investors to shekel-based assets.

Officials face a difficult balancing act. While lowering rates could ease pressure on exporters, it also risks reigniting inflation at a time when Israel continues dealing with war-related uncertainty and volatile energy prices.

Concern is also beginning to grow within the Israeli government itself. Israeli exports have steadily declined in recent years, falling from more than $76 billion in 2022 to under $59 billion last year.

In response, Israel’s Finance Ministry recently announced a new funding initiative focused on artificial intelligence, aimed at helping companies hurt by the shekel’s sharp rise remain competitive in global markets.

{Matzav.com}

Israel is escalating its military campaign along the northern border, with Israeli Prime Minister Binyomin Netanyahu making clear that operations in Lebanon are being broadened in scope and depth, aiming to secure key territory and strengthen defenses for communities in northern Israel.

Speaking Tuesday at the start of a security cabinet meeting, Netanyahu addressed the widening military push, emphasizing close alignment between the country’s political leadership and its top military officials as operations move forward.

“Under my direction and that of the Defense Minister, together with the Chief of Staff, we are deepening our operation in Lebanon,” the prime minister declared, underscoring unified leadership behind the ongoing campaign.

He explained that Israeli forces are increasing their presence on the ground, focusing on consolidating control over strategically important areas while reinforcing a buffer zone designed to protect Israeli towns near the border.

“The IDF is operating with large forces on the ground and is taking control of strategic areas. We are fortifying the security zone in order to protect the communities of northern Israel,” Netanyahu said, outlining the operational objectives guiding the current phase of the mission.

Beyond ground maneuvers, Netanyahu pointed to continued concern over aerial threats, particularly the growing use of explosive drones, and highlighted a nationwide effort to counter them through new technological approaches.

“We are conducting a massive national effort to advance creative and innovative solutions against explosive drones,” he stated, indicating that Israel is investing heavily in advanced defense capabilities to address evolving threats.

Closing his remarks, Netanyahu offered strong public backing to Israeli troops engaged in the campaign, praising their efforts and expressing confidence in their mission as they operate in high-risk areas.

“We support and praise our heroic commanders and soldiers. They are operating deep inside the field. We trust you.”

{Matzav.com}

The public is being asked to offer tefillos for the full recovery of the Gerer Rebbe, who is scheduled to undergo a planned medical procedure today.

According to sources, the procedure is connected to a medical complication from which the Rebbe has recently been suffering involving the sinus and eye areas, after doctors determined that the condition was affecting his vision.

Initially, physicians explored the possibility that the issue stemmed from another medical problem, but following additional examinations, doctors decided to move forward with the planned procedure.

Sources within Ger stressed that the procedure was scheduled in advance and, according to current medical assessments, is considered relatively limited and is not expected to last long.

The procedure is expected to take place at a medical center in Herzliya.

Following the treatment, the Rebbe is expected to spend approximately a week resting and recuperating in Kfar Shmaryahu together with close aides and attendants.

The public is being urged to continue davening for the complete and speedy recovery of Rav Yaakov Aryeh ben Yuta Henya.

{Matzav.com}

Reb Gedaliah Kook shared an emotional update this week on the condition of his father, the renowned mekubal and tzaddik Rav Dov Kook, describing moving moments at his bedside, ongoing tefillos, and what the family views as repeated medical miracles surrounding the revered rav’s condition.

Speaking on the “Hafuch Al Hafuch” program with Reb Moshe Ben Lulu, Reb Gedaliah said his father remains hospitalized in intensive care, partially sedated and on a ventilator, though some improvement has been seen in recent days.

“The Rav partially opened his eyes during Yom Tov,” he said, while stressing that the situation remains serious and that Rav Dov still desperately needs the tefillos of Klal Yisroel.

Reb Gedaliah recounted a particularly emotional moment that occurred beside his father’s hospital bed.

According to him, family members played some of Rav Dov’s favorite niggunim, prompting a visible emotional response from the weakened mekubal, who also grasped his son’s hand.

“That was the greatest thing that happened,” Reb Gedaliah said emotionally.

At the same time, he clarified that the rav has not yet fully regained consciousness.

“He is not really in a state of full awareness — it’s more like flickering,” he explained.

He added that family members and talmidim remain constantly at the bedside, surrounding the rav with uninterrupted Torah learning and tefillah.

Reb Gedaliah also revealed difficult details about his father’s longstanding health struggles, particularly the condition of his legs after years of prolonged standing during heartfelt tefillos on behalf of Klal Yisroel.

“His legs are almost black,” he said painfully.

He described how doctors in the past repeatedly warned that Rav Dov’s condition was severe, yet the rav continued recovering against all expectations.

“The Rav is accustomed to miracles,” he said, recalling instances in which physicians feared amputation would be necessary, only for the situation to dramatically improve.

One especially striking story involved a serious infection Rav Dov suffered several years ago.

According to Reb Gedaliah, doctors instructed the rav to undergo a full course of antibiotics, but Rav Dov took only a single pill, relying on his deep emunah.

“We had absolutely no reason to think it would disappear on its own, and the doctors were shocked,” he recounted.

Several months later, the infection reportedly vanished entirely, and Rav Dov returned to standing for long hours in davening.

“We are only people of little faith,” Reb Gedaliah added.

Toward the conclusion of the interview, he urged the public to continue davening fervently for his father’s recovery and not lose hope.

“It is the tefillos of Klal Yisroel that are sustaining the Rav,” he said.

He asked the public to continue mentioning the rav’s full name in tefillah: “Harav Dov ben Shoshana,” emphasizing that the tremendous outpouring of prayers is deeply felt around the rav’s bedside.

{Matzav.com}

A heated debate broke out Monday in the Knesset Economic Affairs Committee over a Transportation Ministry proposal to reduce the frequency of annual vehicle inspections for private cars, with lawmakers and industry representatives clashing over whether the reform would improve convenience or endanger public safety.

Under the proposal being advanced by the Transportation Ministry, privately owned vehicles up to seven or nine years old would undergo licensing inspections once every two years instead of annually.

Committee chairman David Bitan immediately challenged the economic justification behind the move.

“The fact that a person saves 100 shekels a year has no impact whatsoever on the cost of living,” Bitan said. “On the other hand, there is the issue of vehicle safety.”

Bitan proposed an alternative model under which inspection frequency would be based primarily on mileage, while still requiring at least one inspection every two years.

“There is a complete imbalance in determining this according to years alone,” he argued. “Leased vehicles travel tens of thousands of kilometers each year, while others travel only a few thousand. It makes no sense to apply the same rule to everyone.”

MK Sasson Guetta backed the proposal and argued that if the Transportation Ministry truly wanted to ease the financial burden on citizens, it should reduce vehicle licensing fees rather than weaken safety standards.

Deputy Director-General of the Regulatory Authority Guy Mor defended the reform, insisting that the primary savings would come not from the inspection fee itself, but from the time citizens spend dealing with the process.

“When someone dedicates half a day to a vehicle inspection, that’s worth a lot of money. This represents a national savings of about one billion shekels per year,” Mor said.

He also stated that only five percent of road accidents stem from mechanical failures, comments that triggered sharp backlash from representatives of the automotive repair industry.

Ronen Levy, chairman of the Garage Owners Association, argued that European countries are actually increasing inspection frequency because of declining safety standards and odometer fraud.

Attorney Raz Nizri, representing the vehicle inspection institutes, presented opposing data based on research by Professor Moshe Becker, claiming the proposed reduction in inspections would increase accidents and cause economic damages estimated at 4.3 billion shekels annually.

According to Nizri, the Transportation Ministry is ignoring the real financial consequences of traffic accidents.

Representatives of the inspection institutes added that the average vehicle inspection lasts only 26 minutes and argued that “all the Transportation Ministry is saving citizens is the cost of a falafel portion and a bottle of grape juice.”

On the other side of the debate, Neta Lee Graiver, CEO of the advocacy group “Our Interest,” supported the reform and dismissed the warnings as exaggerated.

“As a citizen, I wait two and a half hours outside the inspection institute,” she said. “It’s troubling to hear professionals claim that this inspection ‘is worthless anyway.’”

Yosef Naim, chairman of the tire industry association, warned that poor road infrastructure is causing accelerated tire deterioration and claimed that more than half of the vehicles inspected by Transportation Ministry mobile enforcement units are found with severe defects.

Jonathan Ilan, a representative of the National Road Safety Authority, noted that 168 people have been killed in traffic accidents since the beginning of the year.

He clarified that the authority does not oppose reducing inspection frequency for newer private vehicles, where no proven link has been found between mechanical failure and accidents. However, he said older and heavier vehicles show a direct correlation between wear, mileage, and safety risks.

A police representative similarly voiced support for applying the reform only to newer vehicles.

At the conclusion of the discussion, Bitan demanded that the Transportation Ministry halt advancement of the reform until a comprehensive professional review is completed.

He again urged officials to examine a mileage-based model and instructed the ministry to return to the committee within a week with detailed answers.

“We managed until now with the existing system,” Bitan said. “We can wait a little longer to receive a reliable safety report — and not endanger human lives in the name of reducing regulation.”

{Matzav.com}

Legendary singer Avraham Fried revealed this week that a remarkable moment of hashgachah pratis during a recent visit to the Ohel of the Lubavitcher Rebbe in New York inspired him to launch an unexpected new musical project — recording Jewish lullabies for children.

Fried shared the story during an in-depth interview with journalist Binyamin Lipkin on the debut episode of the “L’Binyamin Amar” podcast on the COL website, where he discussed personal moments from throughout his celebrated musical career.

The singer recounted that during a recent visit to the Rebbe’s kever, he davened for continued success in his music and performances.

“I asked for brachah and hatzlachah in singing, to continue performing and singing, etc.,” Fried recalled.

After leaving the Ohel, Fried entered an adjoining room where videos of the Lubavitcher Rebbe are continuously shown.

To his astonishment, the particular video playing at that exact moment featured the Rebbe speaking publicly about music during a farbrengen decades earlier.

“How many clips are there of the Rebbe speaking publicly about singing at farbrengens?” Fried asked rhetorically. “There aren’t many.”

Fried described the timing as extraordinary and deeply personal.

“Tell me this isn’t hashgachah,” he said. “I’m looking at the video, and the Rebbe says: ‘Before babies begin to speak, it was customary to lull them to sleep, according to the custom of elderly Jewish women, with a lullaby, Torah di beste sechora [the best merchandise]. And it is known what the Rashba writes regarding the customs of elderly Jewish women in Israel, how carefully they must be preserved.’”

Fried said he felt at that moment as though the Rebbe was speaking directly to him.

Inspired by the experience, he immediately decided to move forward with a completely new type of project.

“On the spot I decided: I’m going to make lullaby albums now,” Fried announced.

A new Channel 13 poll published Monday night shows former Prime Minister Naftali Bennett’s new political party losing momentum, while Israeli Prime Minister Binyomin Netanyahu’s bloc continues edging closer to a governing majority.

According to the survey, Bennett’s “Together” party dropped three seats compared to the previous Channel 13 poll, while the Netanyahu-led bloc together with the chareidi parties now stands at 56 seats, compared to 54 seats for the anti-Netanyahu bloc.

If elections were held today, Netanyahu’s Likud party would emerge as the largest faction in the Knesset with 25 seats, the poll found.

Bennett’s “Together” party fell sharply to 23 seats, down from 26 mandates in the previous survey.

Meanwhile, the “Yashar” party headed by Gadi Eisenkot continued gaining strength and is now projected to become the third-largest party in the Knesset with 14 seats — an increase of two seats from the network’s earlier poll.

Among the chareidi parties, the numbers remained unchanged. Shas, led by Aryeh Deri, held steady at 10 seats, while United Torah Judaism remained stable with 7 mandates.

Religious Zionism, headed by Bezalel Smotrich, narrowly crossed the electoral threshold with 4 seats, while Otzma Yehudit under Itamar Ben Gvir received 10 seats.

The Democrats party, led by Yair Golan, was projected to win 9 seats, while Yisrael Beiteinu under Avigdor Lieberman gained one additional seat and rose to 8 mandates.

Among the Arab parties, Hadash-Ta’al was projected to receive 6 seats, while Ra’am, led by Mansour Abbas, dropped to just 4 seats.

According to the poll, the Netanyahu bloc together with the chareidi factions now stands only two seats short of the 61-seat majority needed to form a government.

The anti-Netanyahu bloc was projected to receive 54 seats, while the Arab parties collectively accounted for 10 mandates.

{Matzav.com}

Qatar has reportedly provided Iran with massive financial assistance in recent weeks, according to sources cited Tuesday, as Tehran struggles under mounting economic pressure and the lingering effects of the American naval blockade.

The report, published by Yisroel Hayom, claims the Qatari government transferred significant sums of money to the Iranian regime following a series of contacts between Doha and Tehran over the past several weeks.

Iran’s Foreign Minister Abbas Araghchi met Monday with Iranian Central Bank Governor Abdolnaser Hemmati in a meeting that, according to the report, highlighted Qatar’s increasingly deep involvement in supporting Iran economically — far beyond its previously known role as a mediator in negotiations.

According to the report, Iran’s financial situation has deteriorated sharply due to the U.S. maritime blockade. The country is reportedly facing severe difficulties paying public-sector salaries, financing food and goods imports, and maintaining financial support for members of the Islamic Revolutionary Guard Corps.

Sources quoted in the report said Qatar transferred substantial financial aid to Iran after diplomatic contacts intensified in recent weeks.

According to those sources, relations between Doha and Tehran expanded significantly following the ceasefire reached more than a month ago.

The report claimed one of Qatar’s main motivations was to prevent another Iranian strike against its territory after Qatar came under attack during the war.

Israel Hayom noted that following the ceasefire, both the United Arab Emirates and Saudi Arabia were reportedly targeted in separate incidents, while Qatar remained untouched.

One source cited in the report said the two countries are also engaged in secret discussions aimed at reaching a broader arrangement that could include Qatari assistance in developing the enormous shared natural gas field jointly controlled by Iran and Qatar.

{Matzav.com}

Shas faction chairman Yinon Azoulay launched a sharp attack Tuesday against Israel’s attorney general and several coalition lawmakers following the decision to revoke yeshiva students’ eligibility for the government’s “Discounted Apartment” housing lottery program.

Azoulay accused the officials of effectively increasing the chances that terrorists and their families would benefit from the subsidized housing initiative while excluding Torah learners.

The Shas MK directed criticism at Attorney General Gali Baharav-Miara along with coalition lawmakers Yuli Edelstein, Dan Illouz, Ofir Sofer, and Sharren Haskel over the controversy surrounding the housing program.

According to Azoulay, “The families of terrorists are thanking the attorney general today, along with those members of Knesset who call themselves ‘right-wing,’ who joined forces with the dismissed attorney general and with their own hands increased the chances of terrorists winning ‘Discounted Apartment’ lotteries by excluding Torah learners from participating.”

He continued by condemning what he described as a reversal of priorities in the Jewish state.

“It is unbelievable that in the Jewish state, instead of strengthening those who dedicate their lives to Torah study and to the Jewish identity of the state, they are strengthening terrorists.”

Azoulay also made clear that Shas does not intend to retreat from the fight over the issue.

“It won’t help you — we will not surrender. ‘The more they oppressed them, the more they multiplied and spread.’ Torah learners will continue to sit and learn, because money does not interest them.”

{Matzav.com}

Shin Bet chief David Zini met in the United Arab Emirates with former senior Fatah official Mohammed Dahlan, according to a report Tuesday by Kan News citing Israeli and regional sources.

The meeting has drawn attention because Dahlan has repeatedly been mentioned in international discussions as a leading candidate to play a major role in governing Gaza after the war.

Responding to the report, the Shin Bet issued a brief statement saying: “We do not comment on the schedule of the head of the service.”

Dahlan, once one of the most powerful figures in Fatah, previously headed the Palestinian Authority’s Preventive Security apparatus in Gaza. For years, he has lived in exile in Abu Dhabi.

In July 2024, The Wall Street Journal reported that American, Israeli, and Arab officials had identified Dahlan as the leading candidate to oversee Gaza in the postwar era.

At the time, Dahlan rejected the idea publicly. Speaking to Sky News Arabia, he said: “I have stated more than once my refusal to accept any security, ministerial or executive role, and I call for the formulation of a realistic and practical international work plan that will lead to the establishment of a Palestinian state with Jerusalem as its capital.”

Earlier this year, it was also reported that former Prime Minister Ehud Olmert met with Dahlan in Abu Dhabi.

The revelation comes weeks after reports surfaced that Shin Bet director David Zini made a rare and highly unusual visit to the UAE amid the ceasefire and rising tensions involving Iran, signaling increasingly close security coordination between Jerusalem and Gulf states.

The Wall Street Journal reported this month that Mossad chief Dedi Barnea also traveled to the UAE during the war with Iran.

According to the newspaper, Barnea visited the country at least twice during the 40-day conflict in order to coordinate security matters related to the fighting.

Arab officials and another informed source told the Journal that the secret visits took place during March and April.

{Matzav.com}

[Video below.] Former National Security Adviser John Bolton sharply criticized the Trump administration’s negotiations with Iran on Monday, arguing that any pause in military pressure gives Tehran valuable time to regroup and rebuild after weeks of Israeli attacks.

Appearing on CNN’s “The Lead,” Bolton said he believes the ongoing diplomatic effort should collapse rather than produce a ceasefire agreement.

“I hope the negotiations break down, because every day that goes by is a gift to Iran. It gives them 24 more hours to recover from the pummeling they took during the six weeks of Israeli attack. It gives them time to try and reconstitute their government, which increasingly looks dysfunctional and decision-making capability. And it postpones the day of reckoning. Ultimately, when the threat that they posed to control over the Strait of Hormuz is resolved in a way that they never come back and do it again, I think the ceasefire was a mistake.”

Bolton warned that the Trump administration risks squandering strategic gains achieved through military action against the Islamic Republic.

“I think these negotiations are a mistake. I think we’re on the verge of something that ultimately history will decide was a catastrophic loss for the United States. We have we have done significant damage to the Islamic Republic of Iran. And right now, we’re letting them undo the damage. And that that is a real tragedy, not just for us, but for the people in the region.”

CNN host Pamela Brown pressed Bolton on whether he would still oppose a deal even if Iran agreed to major American demands involving its nuclear program.

“So you think even if a deal is reached and, Iran commits to some of the sticking points that the U.S. wants, like moving all the enriched uranium out, that that would still be a failure.”

Bolton responded skeptically, saying the details of the negotiations appear to shift constantly and accusing Iran of deliberately dragging out the process.

“Well, the it’s very hard to know what the terms they’re discussing are since they change day by day. But but it seems a constant that the uranium issues kicked down the road for at least 60 days. This is what Iran wants. They want more time. 60 days turns into six months and then it turns into more than that. I don’t think Donald Trump is analyzing what America’s strategic interests are here. I think he’s looking at the price of gas at the pump, and he’s doing whatever he can to bring it down.”

WATCH:

{Matzav.com}