It looks like a regional phenomenon - countries near to Israel have a similar fertility rate.

see (Middle East fertility rates) https://data.worldbank.org/indicator/SP.DYN.TFRT.IN?location...

and (OECD fertility rates)

https://www.oecd.org/en/data/indicators/fertility-rates.html

University students are predominantly female in Israel as in North America, so female education isn't a differentiator for fertility rate.

I recall reading an article about the culture of Israel is friendlier towards families/young children. Not sure how that cultural aspect would show up in stats.