US-Israel relations deterioration

What happened: U.S.-Israel relations have been strained due to differing Iran policies, with President Trump's administration not providing defensive action for Israel during Iranian missile salvos. Israel's reputation among Americans has deteriorated, with 60% viewing it unfavorably. Israelis have complained about the U.S. military's presence at Ben Gurion Airport. The U.S. formally rejected Somaliland's sovereignty, a blow to Israel which had recognized it. Jamie Dimon criticized the Trump administration's handling of allies.

Market impact: U.S.-Israel defense contractors like Lockheed Martin and Raytheon Technologies could face reduced demand or collaboration. Israeli tech companies listed on U.S. exchanges, such as Check Point Software and Wix, may face increased scrutiny. The U.S. banking sector, including JPMorgan Chase, could see shifts in policy towards allies.

What to watch next: Israel's upcoming elections on March 23, which could bring new dynamics to U.S.-Israel relations. The U.S. State Department's annual human rights report, expected in April, which may address Israel's reputation. Iran's nuclear program developments, which could escalate tensions.