Israel’s Finance Ministry warns that the air conflict with Iran could damage the economy by over 9 billion shekels ($2.93 billion) each week.
Current “red” restrictions, imposed by the Home Front Command, limit work travel, close schools, and mobilize reserve forces, leading to an estimated economic loss of 9.4 billion shekels weekly starting next week.
The ministry is advocating for a switch to “orange” restrictions, which would allow more workplace activity and reduce losses to 4.3 billion shekels a week. The bombing campaign began last Saturday, leading to retaliatory strikes across the region.
Schools are closed, gatherings are banned, and only essential services can operate, pushing most employees to work from home. Israel’s economy grew 3.1% in 2025, with expectations for over 5% growth in 2026 following a ceasefire.
With information from Reuters
