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The war with Iran is taking a significant toll on the Israeli economy. According to estimates by the Israeli Finance Ministry, the conflict is costing the country about 9.4 billion shekels per week, or roughly $3 billion, if the restrictions imposed at the national level continue.
The information was published by the Times of Israel, citing ministry officials, as the country continues to operate under tight security measures due to the conflict with Iran.
The Home Front Command of the Israel Defense Forces (IDF) decided to extend the nationwide restrictions until the evening of March 7, following a new assessment of the security situation.
The measures include banning public gatherings, suspending educational activities and restricting access to workplaces except in sectors deemed essential. In many cases, employees have been forced to work from home, while schools remain closed.
The Director General of the Ministry of Finance, Ilan Rom, has sent a letter to the IDF Home Front Commander, General Shai Klapper, requesting the easing of restrictions and the transition to a limited activity regime to allow for a gradual reopening of the economy.
"No one questions the need for protective measures adapted to the security situation, but the widespread closure of the economy brings very large economic costs," his statement said.
Rom also stressed that the Israeli economy has been under great pressure over the past two and a half years, due to increased security spending and the consequences of the war with Hamas.
According to economic officials, if the restrictions continue for a long period, the impact on economic activity, businesses, and the labor market could become even more severe.
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