Israel in June 2026: the most important developments in economy
In June 2026, the main economic story in Israel was the effect of regional hostilities on energy markets. Oil prices rose by more than $4 on June 7 after Israeli strikes on Iran and Lebanon, and by more than 3% on June 8 when Israel and Iran traded attacks and Iran threatened US and Israeli oil and gas sites. Prices steadied on June 9 after the two countries agreed to halt hostilities. By June 19, Brent crude was set for an 8% weekly fall after Israel and Hezbollah agreed to a ceasefire, and ship crossings through the Strait of Hormuz rose after a US-Iran deal to end the war. On June 20, Iran announced it was closing the strait in response to Israeli strikes in Lebanon. Air Canada extended its halt of flights to Tel Aviv until October 24.
A second theme was trade and sanctions over Israeli settlements. France said it could impose more sanctions on settlers, and about 140 Labour MPs urged the UK government to ban trade with settlements. Israel threatened to close eight consulates in response to EU sanctions. An investigation found that settler products were being sold in Europe as Israeli-made goods, and the EU Commission was expected to propose trade options while Spain pushed for new EU trade sanctions.
In business, Motorola Solutions acquired the drone defense company D-Fend for $1.5 billion, the AI company Dream tripled its value to $3 billion in a funding round, and Israel reported a record of more than $19 billion in defense exports for 2025. Meta said it would take legal action against the spyware firm NSO. Home sales continued to decline, Teva laid off 250 staff in Israel, and a report put the cost of Israel's wars since October 7 at nearly $205 billion. On June 24, Benjamin Netanyahu backed ending US military aid in order to build armaments independence.
by WorldBrief & Maksim Micheliov | AI-generated summary
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