Israel’s Finance Ministry has calculated that the ongoing conflict with Iran could cost the country more than 9 billion shekels (equivalent to $2.93 billion) per week if emergency restrictions on activity remain in place.
The estimated economic impact is linked to the current “red” restrictions imposed by the Home Front Command, which include school closures, travel limitations, and a shift to essential services. Transitioning to the less restrictive “orange” level could reduce the weekly economic toll to around 4.3 billion shekels (approximately $1.35 billion).
It is important to note that the costs of war extend beyond military expenses and also encompass the extent to which the domestic economy is disrupted and for how long. Prior to the conflict, Israel’s economy had been experiencing steady growth, with a 3.1% expansion in 2025 and expectations of even stronger growth in 2026 after a ceasefire in Gaza.
To provide a different perspective on Israel’s economic losses, some analysts are comparing them to Bitcoin. The ministry’s $3 billion weekly estimate equates to approximately 41,300 Bitcoin at current prices. This comparison allows investors to gauge the impact of the conflict on the cryptocurrency market.
In terms of Bitcoin supply and exchange-traded funds (ETFs), the 41,300 Bitcoin loss under the “red” restrictions surpasses the weekly global mining supply and represents significant potential institutional demand. If Israel were to hold 41,300 Bitcoin, it would rank among the top sovereign holders of the cryptocurrency.
Despite the theoretical comparison, there are no indications that Israel plans to establish a Bitcoin reserve, as the country’s relationship with cryptocurrency has been complex due to banking access issues. Nonetheless, Israel has seen growth in its crypto economy, with inflows exceeding $713 billion from 2024 to 2025.
