Israel in March 2026: the most important developments in economy
Israel's economy in March 2026 was shaped by the war with Iran that began with US and Israeli strikes on 1 March. The most reported effect was on energy markets. Oil prices rose about 10% on the first day, Brent crude reached $107.1 on 8 March, and prices stood between $100 and $120 around 9 March and again on 12 March. Shipping through the Strait of Hormuz was reported down by 80% on 4 March, and Iran was reported to have blocked the strait on 11 March, while other reports on 13 March said tankers were still passing. On 22 March President Donald Trump gave Iran 48 hours to open the strait.
Energy infrastructure was hit on both sides. Israel suspended natural gas exports on 1 March, and two Israeli gas fields were shut on 10 March. Israel and the United States struck Iran's South Pars gas field on 18 March, halting gas flows to Iraq; Qatar warned of a threat to global energy security. Prime Minister Benjamin Netanyahu said Israel acted alone, and Trump said he knew nothing of the strike, which Israeli officials rejected. Iran threatened Gulf energy facilities and power plants, and the Bazan group confirmed on 30 March that its Haifa refinery was hit by Iranian missiles.
The war weighed on Israel's own economy. Damage was estimated at about $3 billion a week, and one report put the cost at $6.4 billion in 20 days. The Bank of Israel cut its growth outlook, while the Finance Ministry projected growth of 5.3% to 6.1% for 2027. Ben Gurion Airport reopened in phases from 4 March and capped departing flights at 50 passengers by 23 March, and airlines, including Delta through May, extended suspensions of flights to Israel.
Elsewhere, Japan released oil reserves, and South Korea announced a $17 billion budget. Google finalized its $32 billion purchase of the cybersecurity company Wiz on 11 March, and Volkswagen was reported in talks with Rafael, the maker of the Iron Dome, about defense production.
by WorldBrief & Maksim Micheliov | AI-generated summary
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