From gas to construction: Repercussions of the Iran war shake all Israeli sectors… Details
Exclusive Follow-ups – Al-Khabar Al-Yemeni:
The Israeli entity is facing increasing economic crises as a result of the ongoing war with Iran, amidst direct impacts on the energy, construction, labor, and services sectors.
Israeli media, including channel i24, reported that two weeks after the outbreak of the war, more than 12,000 building impacts were recorded due to Iranian attacks and Hezbollah attacks.
In a report published by the economic newspaper Calcalist, it confirmed the complete paralysis of the Leviathan and Karish gas platforms for more than two weeks as a result of Iranian missile threats, costing the economy losses amounting to 600 million shekels ($192 million) so far, at a rate of 300 million shekels weekly.
The report indicated that the closure of the platforms by order of the energy minister forced the electricity sector to return to using more polluting and expensive coal and diesel amidst a government blackout on energy mix data for security reasons.
On the other hand, the American bank JPMorgan raised its inflation rate forecasts for “Israel” to 2.4% by the end of 2026, driven by the repercussions of the war, which caused a supply shock as a result of rising global energy prices and supply chain disruptions, in addition to a narrowing labor market and labor shortages.
The bank explained that rising inflationary pressures, particularly in the services and housing sectors, will force the Bank of “Israel” to reduce the pace of interest rate cuts to only 25 basis points this year instead of the previously expected 75 points, noting that expansionary fiscal policy and increased military spending, which raised the budget deficit from 3.9% to 5.1%, will hinder efforts to curb inflation.
Under these circumstances, public transport drivers in “Israel” demanded the immediate implementation of a special compensation plan to ensure the continuity of their full wages, warning of a decrease in the salaries of 98% of drivers due to reduced working hours during the war, according to Calcalist.
The Israeli construction sector is also facing a severe crisis due to the rise in construction material prices by nearly 13% (i.e., by 43 shekels / $13.87 per cubic meter) as a result of shipping companies imposing exorbitant additional fees and increased energy and insurance costs.
This rise coincides with a severe recession represented by the existence of 86,000 unsold apartments and the cancellation of thousands of purchase deals amidst a price decline that prevents developers from passing new costs onto consumers.
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