Israel's Tech Sector Could Face Disruptions after Attacks, Say Investors

A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)
A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)
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Israel's Tech Sector Could Face Disruptions after Attacks, Say Investors

A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)
A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)

Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others.

High-tech industries have for a few decades been the fastest growing sector in Israel and crucial for economic growth, accounting for 14% of jobs and almost a fifth of gross domestic product.

Israeli stock and bond prices slid and many businesses were closed on Sunday after gunmen from the Palestinian group Hamas rampaged through Israeli towns on Saturday and militants also fired thousands of rockets into Israel in a surprise attack.

Some rockets reached as far as Tel Aviv, prompting airlines to suspend flights to and from Israel, Reuters reported.

Israel retaliated with air strikes on Hamas targets in Gaza, and hundreds of people have died.

"It is a huge disruption to business as usual," said Jack Ablin, chief investment officer and founding partner at Cresset Wealth Advisors. He said in the short-term resources could be diverted if the conflict expands, such as staff at tech companies being called up as military reservists.

Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, said there will likely be a "tremendous effort" to guard physical installations for companies based in Israel from attacks because some technology spending is tied to the military.

A spokesperson for chipmaker Intel Corp, Israel's largest private employer and exporter, said on Sunday the company was "closely monitoring the situation in Israel and taking steps to safeguard and support our workers." The spokesperson declined to say whether chip production has been affected by the situation.

Nvidia, the world's largest maker of chips used for artificial intelligence and computer graphics, said it had canceled an AI summit scheduled for Tel Aviv next week, where its CEO Jensen Huang was due to speak.

Israel-based Tower Semiconductor, which provides customers with analog and mixed-signal semiconductors, mainly for the automotive and consumer industries, said it was operating as usual.

Other tech giants, Meta Platforms, Alphabet and Apple did not respond to requests for comment. Microsoft declined to comment.

Israel's technology sector had already been facing a slowdown in 2023, exacerbated by internal political conflict and protests. A growing number of Israel's tech startups have been incorporating in the United States.



Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.