Middle East: The Israeli enemy's economy is experiencing an unprecedented shakeup in its history, coinciding with the continuation of its brutal aggression on the Gaza Strip for the ninth consecutive month. 

According to Hebrew media, the Yemeni decision to ban Israeli navigation and ships dealing with "Israel" from passing through the seas designated by the Yemeni navy, along with the continuous targeting of the "Umm al-Rashrash" port, has doubled shipping costs, causing an increase in the prices of goods and products within the occupied territories.

According to the Hebrew site "Ynet," the prices of products in Israel have seen a second wave of increases since the outbreak of the brutal Zionist war on the Gaza Strip, with some product prices rising by up to 25%.

The Hebrew site added that Zionist companies such as "Tnuva, Tara, and Strauss" announced price increases for hundreds of dairy products, in addition to rising prices for "Sanfrost, Coca-Cola, Neviot, Tnuva, and Adanit" products, confirming that the increases are due to higher shipping costs resulting from Yemeni operations in the Red Sea.

Overview of the Enemy's Economy

The Israeli economy is the second-largest in the Middle East, with reserves amounting to $521.6 billion. According to data from the United Nations Conference on Trade and Development (UNCTAD), merchandise exports amounted to $73.58 billion in 2022, with an annual increase of 22.3%, while merchandise imports were valued at $107.26 billion in 2022. The US is the largest destination for exports to Israel, accounting for $8.67 billion in 2022.

Following the events of the "Al-Aqsa Storm" operation, the economic suffering of the entity doubled due to the high expenses incurred in Gaza, in addition to the high costs faced by the entity due to attacks from Gaza support fronts.

According to the Israeli Ministry of Finance, the Zionist entity recorded a budget deficit of 4.2% of GDP in 2023, compared to a surplus of 0.6% in 2022, attributing this to increased government spending to finance the war. The Governor of the Bank of Israel estimated the cost of the war on Gaza at about 210 billion shekels ($56 billion) for defense and compensation for those displaced from their homes in the south due to Palestinian resistance operations or the north due to missiles targeting them from Hezbollah fighters in southern Lebanon.

Economic Instability

In December 2023, Israeli media reported on the threat posed by Yemeni threats to Israeli ships and those heading to the enemy entity from an economic perspective, noting that every ship sailing towards "Israel" from the Far East passes through the Suez Canal and on its way there passes through the Bab al-Mandab Strait.

These media reports indicate that Zionist ships are no longer able to pass through the Red Sea and the Bab al-Mandab Strait, forcing them or others wanting to go to occupied Palestinian ports to head towards the Cape of Good Hope, a long and arduous route around Africa, impacting goods and incurring enormous expenses. As a result of the Yemeni blockade on the Zionist entity, the "Umm al-Rashrash" port has been disrupted, incurring significant losses, according to Zionist officials.

The administration of the "Umm al-Rashrash" port had previously stated that half of the workers at the port are at risk of losing their jobs, with plans to lay off half of the 120 employees. The "Umm al-Rashrash" port primarily handles car imports and potash exports from the Dead Sea and is smaller compared to the Haifa and Ashdod ports on the Mediterranean, which handle nearly all of the country's trade.

The CEO of the "Umm al-Rashrash" port expressed dissatisfaction with the failure of the US-British coalition to protect Zionist ships or those wanting to pass to the port from the Red Sea, affirming that if the entity's government does not intervene to help pay salaries, layoffs are inevitable, and the remaining workforce can only maintain minimal operations.

The high-quality Yemeni operations, along with the war on the Gaza Strip, have dealt severe blows to the Zionist economy, resulting in decreased exports and foreign investments, rising goods prices, and inflation. According to Hebrew media, the Zionist worker, upon seeing the significantly increased prices at the supermarket, turns to the employer to demand a wage increase. The employer tends to agree, as making an urgent change of employees is not feasible, and the Israeli labor market is tight, with unemployment nearing structural levels and no surplus labor available.

As the economic collapse within the Zionist entity continues to grow, Yemeni military operations are escalating, potentially leading to a fifth and sixth escalation phase, with greater and more severe impacts than anticipated by Americans and Zionists.