Israeli insurance and clean-energy stocks fell sharply on July 8 as markets reacted to renewed US strikes on Iran and the reinstatement of sanctions.

The declines point to the financial fallout from the collapse of the US-Iran ceasefire reaching Israeli markets, with oil prices climbing and the shekel weakening as investors weighed the risk of a renewed closure of the Strait of Hormuz.

The Tel Aviv insurance index fell 3%, with Menora Mivtachim down 4.2%, Harel down 4.1%, Clal down 2.8%, Phoenix down 2.5% and Migdal down 1.5%. The benchmark TA-35 and TA-125 indices swung from early gains to losses of about 1% before paring the declines.

Clean-energy shares extended the previous day's losses, with the TA Cleantech index down 2% after a 4% fall on July 7. Nofar Energy dropped 5.9%, Enlight fell 4% and Doral weakened 3%. Property and construction shares also declined, with the TA Construction index down 2% and the real estate index off 1.9%.

Banking shares bucked the trend, with the TA Banks index turning to a gain of 1.7%. Mizrahi Tefahot and the International Bank climbed 3%, Discount rose 2%, Hapoalim gained 1.3% and Leumi 1.2%.

Brent crude jumped almost 7% and WTI rose 6.5% on concern over a renewed blockage of Hormuz, while the dollar pushed above ILS3.05 and the euro traded at ILS3.49, extending the shekel's slide from the previous session.

Fintech company Nayax fell 6.3% after disclosing a cyber breach at one of its subsidiaries. The company said its monitoring framework had identified unusual activity in one of its cloud accounts, which was blocked and contained immediately.

It said it was working with leading experts and law enforcement in Israel and the United States, adding that the investigation was continuing and the scope of any data involved had not been determined.

The moves followed US strikes overnight, with US Central Command saying it had begun powerful strikes on Iran in response to Iranian attacks on three commercial ships in the Strait of Hormuz, after Washington revoked sanctions relief granted to Iran under the memorandum.