Israel in July 2026: the most important developments in economy
Israel's economy in July 2026 moved with the war involving Iran. Early in the month, airlines expanded flights to Israel during a period of relative calm in the Middle East. Air Haifa announced a new route between Ben-Gurion airport and Eilat with up to ten daily flights, and Arkia said it would resume flights to Marrakesh. Oil prices fell to levels not seen since the start of the US-Israel war on Iran, while a report said Israel's largest refineries face years of repair after Iranian airstrikes. From mid-July oil prices surged on fears of fuel rationing as the war escalated, and they spiked again on July 29 after President Trump threatened to hit Iran hard.
Trade with Israeli settlements in the West Bank was the second main subject. On July 9 the European Commission presented options for sanctions against Israel and considered a ban on trade with settlements; on July 12 Europe was reported to be set to approve its first sanctions over the Gaza war. The United Kingdom said it was working on a ban on trade in goods and services with the settlements. Belgium agreed to ban goods from the settlements on July 19, and the Netherlands announced a ban on imports from settlements that it called unlawful. Qatar blocked Volkswagen from supplying Israel with armored vehicles, citing the war in Gaza and international legal concerns.
In business, Israel Aerospace Industries announced a merger with Elta ahead of a dual stock market listing, and defense start-ups drew about $3 billion in funding. The head of Bank Hapoalim said controlling the defense budget would be the main issue for the next government. A strong shekel made Israeli tech workers more expensive than their US counterparts, Monday.com said it would lay off a fifth of its staff after its shares fell by 50%, and a survey found that over 90% of Israelis expect prices to rise within a year, a record high.
On July 7 Israel refused to renew a water agreement with Jordan, and Jordan began seeking alternative water sources. Israel also launched a new search for natural gas in the Mediterranean.
by WorldBrief & Maksim Micheliov | AI-generated summary
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