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The server IP the spam is coming from seems to be in Israel.
Will my domain's email address end up blacklisted as a result of this spam?
Does anyone know how I can stop the spamming?
People are sending out spam emails in which the header email address spoofs the address one of my domains.
If that is the case, it sounds like the server allows for SMTP relaying which is a no-no and has been for many years. You may want to run a DNS Report to check for any failures in your MX Records too. Send the DNS Report to your host and ask them to clean up the failures and to implement an SPF for you.
The worst thing is some spam blockers will blacklist our domain name because of this! That really sucks.
SPammers use fake email addresses using out domain name
Actually they use your email address because it is a valid email address, thus in case the receiving mail server has the anti-spam feature that connects to your server to check if the address is valid before accepting the email, it will get through.