IDF: Sirens were sounded in several areas across country

IDF: Sirens were sounded in several areas across country

IDF Sirens Signal Escalating Regional Tensions and Economic Uncertainty

Air raid sirens were sounded across multiple regions of Israel on February 25–26, 2026, following missile launches from Yemen and Gaza, prompting widespread civilian alerts and reinforcing concerns over regional instability. The Israeli Defense Forces (IDF) confirmed the interception of projectiles, including three from Houthi rebels in Yemen and two from Gaza, with no reported injuries or damage to critical infrastructure. The Houthis, an Iran-aligned group, claimed responsibility for targeting Ben Gurion Airport, escalating their campaign of missile strikes against Israel since March 2025.

The IDF also announced a preemptive strike on Iran on February 26, targeting military and nuclear-related sites in Tehran, accompanied by warnings of imminent Iranian retaliation. Defense Minister Israel Katz declared a nationwide state of emergency, urging civilians to remain in protected areas. The operation, conducted in coordination with U.S. Central Command, involved extensive mobilization of reserves and closure of Israeli airspace to civilian traffic, disrupting travel and logistics.

Economic implications of prolonged conflict are significant. The repeated closures of Ben Gurion Airport and disruptions to transportation networks could strain Israel's trade and tourism sectors, which contribute approximately 5% of GDP. Additionally, the mobilization of military resources and emergency expenditures may increase fiscal pressures on the government, which has already allocated over 1% of GDP to defense in 2025.

Regional instability also impacts investor sentiment. The U.S. involvement in strikes against Iran and threats of retaliatory attacks heighten risks of broader geopolitical spillovers, potentially affecting global energy markets and trade routes. Analysts note that prolonged conflict could drive up insurance premiums for commercial entities operating in the region and deter foreign direct investment in Israel's technology and manufacturing sectors.

As of February 28, 2026, the IDF continues to monitor threats, with no immediate signs of de-escalation. The financial community remains cautious, balancing Israel's resilient economy with the unpredictable costs of sustained military engagement and regional volatility.