Israel's economy recovered from previous wars with Hamas, but this one might go longer, hit harder

abcnews.go.com:

Just last month, Israeli Prime Minister Benjamin Netanyahu predicted a new era of peace and prosperity in the Middle East, based on growing acceptance of Israel within the region

JERUSALEM — Just last month, Israeli Prime Minister Benjamin Netanyahu predicted a new era of peace and prosperity in the Middle East, based on growing acceptance of Israel within the region.

Today, with the Israel-Hamas war in its fourth week, that vision is in tatters.

The mobilization of 360,000 reservists and the evacuation of 250,000 Israelis from their homes, according to numbers provided by the Israeli military, has upended many businesses. Restaurants and stores have emptied. Airlines have canceled most flights to Israel, and tourists have called off trips. A main natural gas field has been shut down, farms have been destroyed for lack of workers and businesses have furloughed tens of thousands of workers.

Israel has vowed to crush the Gaza Strip's ruling Hamas group, which killed 1,400 people and took more than 240 others hostage in an Oct. 7 rampage in southern Israel. Israeli airstrikes have flattened entire neighborhoods in Gaza and killed more than 8,000 people, according to the Health Ministry in Gaza.

Israel's economy bounced back after previous wars with Hamas, but this round could last longer, possibly months, because the military's self-declared mission is to end Hamas rule, not just contain the militants.

Escalation of the conflict is a tangible threat. Israel is already engaged in low-level fighting on three additional fronts – Lebanon, the West Bank and Syria. A long and possibly multi-front conflict could make it more difficult for the economy to recover than in the past. And even before the war, Israel's economy was