Israel’s southern Port of Eilat has declared bankruptcy because of the lack of commercial and trade activity, countercurrents.org reported. Eilat Port CEO Gideon Golber said, “The port is completely closed, and there has been no activity in the port for eight months, due to the failure of the coalition countries in the Red Sea.

Israel refrained from cutting interest rates on Monday, with the central bank focusing on heightening inflation expectations as the war in Gaza shakes the economy and defense spending surges, Bloomberg News reported. The Bank of Israel’s Monetary Policy Committee left its key rate at 4.5% for the second consecutive meeting. Only a narrow majority of analysts predicted the move, with the others expecting a cut of 25 basis points. The shekel extended its gains after the decision. It rose 2.4% to 3.68 per dollar as of 4:20 p.m. in Tel Aviv, heading for its best daily performance this year.

Israel’s central bank left interest rates unchanged, opting against a second straight cut because of concern that inflation might accelerate again as the war against Hamas continues, Bloomberg News reported. The monetary committee left the key rate at 4.5%, a surprise for most economists in a Bloomberg survey who had predicted a reduction of a quarter percentage point. The shekel initially pared losses after the announcement before trading 0.3% weaker against the dollar as of 5:30 p.m. local time.

A unit of Israel Shipyards Industries is among the potential bidders for Croatian shipbuilder Uljanik Brodogradnja 1856, Jutarnji List reported, citing Eytan Zucker, chief executive officer of the Haifa-based company, Bloomberg News reported. An auction for Uljanik is expected on March 4, following previous, failed attempts to divest the debt-laden company, according to the Zagreb-based newspaper. Other potential bidders include Slovenia’s Eko Bor, Croatia-registered Adria Mont, Romania’s GSP Offshore, Italy’s Micoperi based in Ravenna, and La Maison from Cyprus.

The Israeli securities watchdog's new chairman, Seffy Zinger, heads to the United States next week to woo U.S. investors and reassure them that it is business as usual despite Israel's three-month war with Palestinian militant group Hamas, Reuters reported. The past year was for Israeli markets, with the main Tel Aviv 125 index dropping 15% following the Oct. 7 attack on Israel by the Palestinian militant group which led to the war in Gaza. The index subsequently rebounded to end 2023 up 4% but still significantly lagged U.S. indices. It is now trading at pre-war levels.

The Bank of Israel lowered short-term borrowing rates for the first time in nearly four years on Monday, becoming the first developed country to ease policy, while urging lawmakers to rein in spending that has soared during Israel's war with Hamas, Reuters reported. In reducing interest rates for the first time since April 2020, the central bank cited a stabilisation of financial markets since the outbreak of the war on Oct. 7, declining inflation and weaker economic growth.

Bank of Israel Governor Amir Yaron urged government leaders and lawmakers to maintain responsible fiscal policies during the war with Palestinian militant group Hamas, as Prime Minister Benjamin Netanyahu promised to boost defense spending, Reuters reported. Speaking on Sunday at an inauguration for his second five-year term as central bank chief, Yaron said that Israel needs to adapt its economic policy to the war since investors, ratings agencies, financial markets and the public "are currently keeping a close eye on policy in Israel".

Israel's jobless rate surged to near 10% in October, the Central Bureau of Statistics said on Monday, after the outbreak of war with Palestinian Hamas militants led to tens of thousands of displaced citizens who had lived near the Gaza border, Reuters reported. The main unemployment rate held steady at 3.4% last month. But when taking into account what is expected to be a temporary loss of work, the rate reached 9.6% in October as 428,400 people were jobless versus 163,600 in September, prior to the Oct. 7 attack when Hamas gunmen rampaged though Israeli border towns.

Vesttoo Ltd. creditors are seeking to take control of the bankrupt Israeli startup’s court proceedings, arguing the company should liquidate following revelations that its former executives helped create fraudulent documents that supported transactions on its platform, Bloomberg News reported. A committee of Vesttoo creditors said that the company is “viewed as the Madoff of insurance” and that its remaining cash should be preserved so it can pursue potential litigation against former corporate insiders and other parties involved in the alleged fraud, according to a court filing on Sunday.

The Bank of Israel kept short-term borrowing rates unchanged for a third straight decision as expected on Monday, citing the need to prevent an uptick in inflation as a result of a weaker shekel during Israel's war against Palestinian Islamist group Hamas, Reuters reported. The central bank held its benchmark rate at 4.75% - its highest level since late 2006. It had raised rates 10 straight times in an aggressive tightening cycle that has taken the rate from 0.1% last April before pausing in July and again in August.