The short but direct war with Iran, though lasting just 12 days, has triggered far-reaching economic consequences for Israel. According to the Bureau’s findings, around 36% of Israeli businesses experienced a revenue drop of over 50% in June alone. Even more alarming, 22% of companies reported revenue losses exceeding 76%, exposing the depth of Israel’s economic vulnerability in the face of security crises.
Food and Drink Industry Among Hardest Hit
Among all economic sectors, food and Drink businesses appear to have suffered the most. Roughly 65% of jobs in this industry reported revenue losses of more than 50% during June. Only 7% of businesses in this sector said their income remained unaffected by the war. The numbers highlight that the economic blow from the conflict has extended beyond the military and industrial spheres into daily life, disrupting livelihoods across Israeli society.
Economic Fragility Exposed Amid Regional Turmoil
The data points to a fragile Israeli economy, heavily reliant on relative security and regional stability. Just 17% of surveyed companies said the recent war had no impact on their monthly revenue—a strikingly low figure. It underscores the fact that much of Israel’s economy is unable to withstand the shocks caused by regional warfare. Should such conflicts persist or escalate, the likelihood of an economic standstill becomes far greater.
Erosion of Power: From the Battlefield to the Economy
The financial fallout from the war with Iran has placed Israel in front of a harsh reality: ongoing aggressive policies in the region not only undermine the country’s security but have also left its economic infrastructure highly exposed. These developments may force Tel Aviv’s leadership to reconsider its strategic direction, as continued escalation could deepen public dissatisfaction, worsen the cost-of-living crisis, and trigger capital flight—factors that ultimately shake the foundations of Israel’s political power.
NOURNEWS