Iran war could cost economy about $3B a week: Israel
US and Israeli officials say the military offensive against Iran could last weeks.
Damage to Israel's economy from the air war with Iran could reach more than 9 billion shekels ($3 billion) a week, the finance ministry has said.
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 (around $3 billion) a week, largely starting from next week, it said on Wednesday.
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 (around $1.4 billion) a week.
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.
The offensive could last weeks
US and Israeli officials said the offensive could last weeks.
Hurt somewhat by its war on Palestine’s Gaza, Israel's economy grew 3.1 percent in 2025. In the wake of a ceasefire in October, growth was projected at more than 5 percent in 2026.
Tensions have escalated across the region since the US and Israel launched large-scale attacks on Iran on Saturday, killing nearly 800 people, including Supreme Leader Ali Khamenei, top military officials, and more than 160 schoolchildren.
Iran has responded with drone and missile strikes targeting Israel as well as Gulf countries, which are home to US military assets.
Six US service members were killed and several others wounded in an Iranian strike on a tactical operations centre in Kuwait during the offensive.