Global Tensions Rattle Markets as Trump Rallies Support and Israel Revises Growth Forecasts Amid War

As global financial instability deepens, tensions are mounting both in the political and economic spheres. In a fiery pre-market message, former U.S. President Donald Trump urged Americans to “be strong, courageous, and patient,” calling his sweeping tariff policies a long-overdue correction to a broken system. “The United States has a chance to do something that should have been done DECADES AGO,” Trump posted. “Don’t be Weak! Don’t be Stupid!… Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
His comments come just minutes before the New York stock market opened to another expected round of sharp declines, continuing the downward spiral triggered by escalating trade tensions and uncertainty in global markets.
Meanwhile, the Bank of Israel held its benchmark interest rate steady at 4.5%, while revising its economic growth forecasts downward in light of ongoing conflict with Hamas and the broader global economic fallout from U.S. tariff policies.
The central bank now anticipates a 3.5% growth rate in 2025 and 4% in 2026, trimming its earlier projections of 4% and 4.5% respectively. This revision reflects expectations that the renewed fighting in Gaza will not extend past Q2 2025 and that Israel’s domestic front will not face severe disruptions as experienced earlier in the war.
“The new tariff policy announced by the U.S. government is expected to moderate the volume of world trade and of Israeli exports,” the bank stated, highlighting a significant concern for one of Israel’s key economic engines.
Despite moderate signs of economic recovery, the Bank of Israel remains cautious, acknowledging that geopolitical instability continues to cloud the outlook. The decision to maintain current interest rates underscores a delicate balance between managing inflation and supporting growth amid external shocks.
On the political front, Israeli opposition leaders Yair Lapid and Benny Gantz criticized Prime Minister Benjamin Netanyahu, with Lapid accusing him of attempting to use the Shin Bet for personal protection and Gantz warning that the prime minister has “lost all restraints.” The comments underscore a deepening domestic political crisis at a time when economic and security challenges are converging.