News - Middle East: The consequences of the repeated blows dealt to the Israeli enemy from the Gaza and Yemen fronts are expanding beyond investment and tourism losses due to the aerial blockade. The impact now reaches deeper into the overall economic structure of the occupying entity, including international financial ratings, which are exacerbating both its internal and external crises.

The Organisation for Economic Co-operation and Development (OECD) has once again downgraded its forecast for Israel’s economic growth, citing what it described as “geopolitical and social risks facing Israel”. This refers to the mounting military threats from the Yemeni Armed Forces and resistance movements in Gaza, in addition to internal divisions that are tearing the Israeli entity apart.

In this regard, the Hebrew-language economic newspaper Calcalist reported that “economic growth expectations have been lowered to 3.3 percent for this year and 4.9 percent for 2026”, noting that these projections are based on growing international awareness of the cumulative impact of recent blows suffered by the occupation.

The report emphasized that the OECD tied its downgrade directly to “escalating regional threats,” underscoring that the Yemeni front and its precision operations have become the enemy’s greatest concern, as it remains the only regional front actively targeting the Israeli entity.

The OECD also warned that “widening regional conflicts could reduce economic activity and lead to a significant increase in the fiscal deficit of Netanyahu’s government,” a clear reference to the intensifying escalation from the Yemeni front.

The organization further addressed the internal political rifts plaguing the Zionist entity due to Netanyahu’s insistence on continuing the war and blockade on Gaza, his failure to address the issue of Israeli captives, and growing threats to Israeli settlers—all of which are framed within the broader fallout from both the Gaza and Yemen fronts.

The report also highlighted the ongoing brain drain and flight of capital, along with a sharp decline in foreign investment and the deterioration of other vital economic sectors within Israel.

Notably, the Yemeni aerial and naval blockade has contributed to broad international airspace isolation and a sharp decline in key sources of Israeli income, particularly in tourism and investment. These losses are expected to grow further if the maritime blockade on Haifa Port is enforced.