Israel's shekel jumped sharply and stocks and bonds gained on Monday as investors began to look beyond the escalating conflict with Iran and shape a more favourable long-term risk assessment for the country's assets.

Israeli Prime Minister Benjamin Netanyahu said Monday that Israeli strikes have set Iran’s nuclear program back a “very, very long time.” He added that Israel was not attempting to topple the Iranian government, but said he would not be surprised if that happened as a result of the strikes.

Israel's attack on Iran lifted the dollar ahead of the weekend, but it barely rose above the previous session's high.

After mulling such action for 16 years, Israel has launched air strikes on Iran’s nuclear facilities – a mission fraught with peril not just for the Jewish state, but for the broader Middle East.

Israel’s sudden attack on Iran has threatened to disrupt oil supplies in the Middle East, placing the Opec+ cartel’s recent decision to increase crude production into the spotlight. The Saudi Arabia-led producer group has surprised the oil market this year by fast-tracking the return of idled production even as crude prices fell.