Damage to Israeli economy from Iran war seen at about $3 billion a week

Damage to Israel’s economy from the ​air war with Iran could reach more than ‌9 billion shekels ($2.93 billion) a week, the Finance Ministry said on Wednesday.

Under current “red” restrictions by Israel’s Home Front Command ​that limit travelling to work, order school ​closings, and mobilisation of reserve forces, economic loss ⁠is estimated at 9.4 billion shekels a week, largely starting ​from next week, it said.

The ministry has asked the ​Home Front to move to “orange” – or limited activity that is less restrictive to workplaces than “red”. In this scenario, the loss ​to the economy would be 4.3 billion shekels ​a week.

Israel and the U.S. began bombing Iran on Saturday, ‌triggering ⁠a wave of retaliatory strikes across Israel and the Middle East and disrupting energy exports from the Gulf.

U.S. and Israeli officials said the campaign could last ​weeks.

Schools ​in Israel ⁠are closed this week. Gatherings are banned, while workforce activities are prohibited except ​for essential services – with most employees working ​from ⁠home.

Hurt somewhat by the Gaza war with Hamas, Israel’s economy grew 3.1% in 2025. In the wake ⁠of ​a ceasefire in October, growth ​was projected at more than 5% in 2026.

($1 = 3.0733 shekels)