The Jerusalem Stock Exchange on Tuesday lowered its outlook on Israel’s oil and natural gas stocks, saying they had declined in the past 12 months to a six-month low.
Investors have been waiting for Israel’s government to ease restrictions on the export of oil and minerals since the country’s peace accord with the Palestinians came into effect in December 2014.
The government has been slow to act, and last week the Supreme Court upheld a ruling that would allow exploration and development of oil in parts of the West Bank, the Gaza Strip and parts of east Jerusalem.
The latest move by the stock exchange follows a drop in shares of Gazan energy group Gazprom on Monday, which led to a slide in its stock price.
On Tuesday, the Israeli stock exchange also cut its growth forecast for the country to 3 percent from 4 percent, citing the countrys low growth rates and economic slowdown.
It is not yet clear whether the stock market will reverse course anytime soon.