Israel in February 2026: the most important developments in economy
In February 2026, Israel's economy was affected most by the strikes on Iran on 28 February. Airlines from Europe, Asia and the region cancelled or rerouted flights across the Middle East after Iran, Israel and Iraq closed their airspace, causing major disruption at global travel hubs. Global markets braced for possible oil supply disruptions, with concern centered on a closure of the Strait of Hormuz, and Bitcoin fell below $64,000. Earlier, Dutch airline KLM announced it would suspend all flights to Tel Aviv from 1 March until further notice.
In business, German shipping company Hapag-Lloyd was reported to be in talks to buy Israel's Zim shipping line for up to $3.5 billion, and workers at Zim went on strike. Israeli technology companies drew foreign investment and attention. An Israeli-founded weather satellite company raised $175 million, US cybersecurity firm Palo Alto Networks bought its second Israeli company within days in a deal estimated at $300 million, and drone maker XTEND announced a merger valued at about $300 million that would list it on the Nasdaq. At the same time, reports said artificial intelligence was driving unemployment in the high-tech sector.
Israel also advanced trade and infrastructure plans. India and Israel signed agreements on technology, cybersecurity and finance during Prime Minister Narendra Modi's visit, agreed that Israel would welcome 50,000 Indian workers, and said a free trade agreement was expected this year. Israel approved a new airport in the Negev and a Wizz Air base at Ben-Gurion Airport, and bidding opened for the $50 billion Tel Aviv metro project, targeted to operate in 2037. El Al said it would launch nonstop flights to Hanoi.
Other reports covered economic pressure and disputes. President Donald Trump and Prime Minister Benjamin Netanyahu reportedly agreed to intensify pressure on Iran's oil sales to China. China reportedly labeled Israeli-occupied territories a 'high risk area' and banned new investments there. Israel's state comptroller said the country relies heavily on natural gas but has no strategic onshore gas reservoir.
by WorldBrief & Maksim Micheliov | AI-generated summary
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