The surprise attack by Hamas on Israel has had a significant impact on Middle East markets, with stocks falling and creating a volatile week ahead. Israel's benchmark stock index, the TA-35, experienced its largest loss in over three years with a 7% drop. Other major equities gauges in the region also weakened. The conflict between Hamas and Israel threatens to escalate and has caused divisions within Israel's politics and security structure. This, along with the potential economic consequences, has led to concerns about Israel's asset prices and the stability of its markets.