Summary
Last week, we published our views on the medium-to-longer term implications of the Israel-Gaza conflict. Our views on the longer-term ramifications have not changed, and in this report, we offer a scenario analysis to gauge the potential evolution of the conflict. We include a non-exhaustive list of key signals that we are watching for how, or if, the intensity of the conflict is changing. We also provide views on how our USD/ILS exchange rate target could change should either of these scenarios appear to be materializing.