Disastrous economic consequences of Netanyahu’s war-mongering policies

According to Al Jazeera, the Hebrew newspaper Maariv reported that El Al, Israel’s largest airline, has faced significant reductions in flights, rising costs, and declining revenues in recent months, coinciding with heightened tensions and clashes with Iran.

The newspaper wrote that the airline’s losses over this short period are unprecedented, totaling approximately $100 million. Economic experts attribute this damage directly to the consequences of war with Iran and the fragile security situation in the occupied territories.

Heavy missile attacks by Iran and Yemen’s Ansarallah movement on Ben Gurion Airport in the heart of the occupied territories have caused insecurity at the airport, leading to a domino effect of international airlines canceling flights. The Yemeni armed forces previously issued statements warning foreign airlines to avoid flights to the occupied territories.

Meanwhile, economists and official Israeli statistics indicate that the regime is grappling with three major problems: high inflation, a protracted war, and runaway costs, which have negatively impacted various economic sectors, including housing, social security, and the labor market.

Egyptian journalist Mohamed Mokhtar examined the economic consequences of Israel’s warmongering policies in the region, particularly in Gaza. Using official data, he paints a grim picture of Israel’s economic situation.

In a report published in Arab Independent, he wrote that the Gaza war has pushed Israeli inflation to alarming levels and delayed any potential interest rate cuts. Recent official data show that the Consumer Price Index (CPI) rose 0.4% in July. While this increase matched market expectations, the details reveal a darker economic outlook than initially perceived.

Since the beginning of the year, overall inflation has fallen from 3.8% to 3.1%. The Israeli financial daily Calcalist noted that this could have been considered a positive indicator if key components of inflation were not showing worrying trends.

The services sector, particularly housing, has become the main driver of price increases. Data indicate that housing, which constitutes more than a quarter of the overall index (approximately 27%), increased by 1.1% in July alone. Rent for tenants renewing contracts rose 2.6%, while new tenants face 5.4% increases, reflecting a severe housing crisis that does not appear to be temporary.