JERUSALEM: Tel Aviv stocks opened higher and the shekel hit more than a two-year high against the dollar on Tuesday, after Israel and Iran agreed to a ceasefire following nearly two weeks of fighting.

The broad Tel Aviv 125 index was up 1.7%, while the blue chip TA-35 was up 1.5%, for the market's sixth day of gains in the past seven sessions on optimism that Israel had removed a threat of Iran developing nuclear weapons anytime soon.

The shekel appreciated 1.5% against the dollar to 3.39, its strongest level since February 2023.

(Reporting by Steven Scheer; Editing by Alison Williams)