Severe Financial Bleeding.. The Occupation Loses $2.9 Billion Weekly Due to Escalation with Iran

The Ministry of Finance in the occupation government revealed shocking data regarding the extent of economic drain due to the direct military confrontation with Iran, estimating losses at approximately 9.4 billion shekels, equivalent to 2.9 billion US dollars each week. These figures come amidst the imposition of the highest state of emergency, known as the 'Red Level,' which caused near-complete paralysis in production sectors due to strict restrictions on worker movement and the closure of educational institutions.

Informed sources stated that the ministry is strenuously trying to alleviate the financial burden by demanding a reduction in the alert level to the 'Orange Degree,' a step aimed at reactivating workplaces and reducing weekly losses to about 4.3 billion shekels. These moves coincide with the ongoing aerial bombardment campaigns launched by the occupation in cooperation with the United States since last Saturday, which were met with widespread Iranian responses including the launch of missiles and drones targeting vital sites.

On the ground, officials confirmed that military operations could extend for several additional weeks, meaning continued disruption of public life, prohibition of gatherings, and complete reliance on remote work in most non-essential sectors. The escalation also caused severe disturbances in global energy markets, especially with the disruption of oil export flows from the Gulf region, which adds increasing international and local pressure on decision-makers in Tel Aviv.

For his part, Israeli Finance Minister Bezalel Smotrich warned that the total cost of this war is likely to rise unprecedentedly, pointing to the difficulty of accommodating these emergency expenditures within next year's budget. Smotrich explained that the general financial deficit now threatens to exceed the 3.9% ceiling, which surpasses all estimates and financial plans previously set before the outbreak of the current confrontation with Tehran.

In a related context, economic reports revealed the allocation of huge additional sums to the Ministry of Defense amounting to 9 billion shekels, to be added to the previously approved budget for 2026 of 112 billion shekels. With this increase, the security budget will reach a record level of no less than 121 billion shekels, in an attempt to cover the costs of ammunition, the call-up of reserve forces, and securing the home front which faces continuous missile threats.

The biggest challenge lies in integrating immediate war spending into the 2026 budget, amidst political and legal sensitivities related to its approval date.