Damage to Israel’s economy from the air war with Iran could reach more than 9 billion shekels ($2.93 billion) a week, the Finance Ministry said on Wednesday.Under current “red” restrictions by Israel’s Home Front Command that limit travelling to work, order school closings, and mobilisation of reserve forces, economic loss is estimated at 9.4 billion shekels a week, largely starting from next week, it said.The ministry has asked the Home Front to move to “orange” – or limited activity that is less restrictive to workplaces than “red”. In this scenario, the loss to the economy would be 4.3 billion shekels a week.Israel and the U.S. began bombing Iran on Saturday, triggering a wave of retaliatory strikes across Israel and the Middle East and disrupting energy exports from the Gulf.U.S. and Israeli officials said the campaign could last weeks.Schools in Israel are closed this week. Gatherings are banned, while workforce activities are prohibited except for essential services – with most employees working from home.Hurt somewhat by the Gaza war with Hamas, Israel’s economy grew 3.1% in 2025. In the wake of a ceasefire in October, growth was projected at more than 5% in 2026.($1 = 3.0733 shekels)