Richard Medhurst discusses the significant impact of the ongoing conflict on Israel's economy. Since October 7, approximately 17% of the Israeli workforce has not returned to work, and many Palestinians who used to work in Israel have been unable to do so due to checkpoints and detention.

As a result, 46,000 Israeli businesses have closed, with small businesses being the most vulnerable. The construction industry and related sectors have been severely affected, along with the trade, service, and agricultural sectors. The agricultural sector, which is primarily based in the South and North, has been impacted due to combat zones. He also notes that the total number of Israeli businesses expected to shut down by the end of 2024 is 60,000, but given the current rate of closure, it may be much more.

Richard also mentions that tens of thousands of settlers have been forced to evacuate and that the figure of displaced Palestinians is much higher than reported, with estimates ranging from 300,000 to close to 1,000,000.

The impact of uncontrollable fires in Israel's north and the closure of the Israeli port of Aqaba on the Red Sea is causing significant damage to Israel's economy. Thousands of people have been displaced due to the fires, and the speaker suggests that this is part of a larger goal to weaken Israel's economy.

The closure of Aqaba, which is Israel's most southern port, has resulted in a diversion of maritime traffic and a significant increase in travel time and cost for Israeli imports. Additionally, Yemen and Iraq are reportedly striking other ports in the Mediterranean, making it nearly impossible for Israel to receive supplies through this route. The speaker expresses amazement at the military capabilities of these non-state actors and the strategic significance of their actions in damaging Israel's economy.

He discusses how various factors, including the actions of the Yemeni Army and Hezbollah, have contributed to Israel's economic downfall. The speaker notes that revenues at key Israeli ports have significantly decreased due to the Yemeni Army's maritime operations. Additionally, the threat of escalation with Hezbollah poses fears of further damaging Israel's economy by attacking energy infrastructure. Hezbollah has demonstrated their capability of attacking such facilities through surveillance footage and warnings.

Richard also touches upon the historical context of the Arabs' ability to control strategic maritime traffic points, such as the Suez Canal and the Bab el-Mandeb Strait, which could have significant economic impacts if used effectively. The speaker emphasizes the unprecedented nature of these events and the potential for greater economic damage if Arab countries were to cooperate.

He discusses how Saudi Arabia and the UAE have retaliated against Israel by using advanced weaponry to target their economies. The speaker notes that drone attacks on Saudi Arabia's Aramco oil company and strikes in Dubai, thousands of kilometers away, demonstrate the reach of their military capabilities.

Richard explains that these countries have learned to use long-term strategies to harm Israel's economy, such as choking off oil fields in Saudi Arabia and the UAE and preventing Israeli ports from receiving traffic. The speaker also mentions that the US and UK, who have been bombing Yemen, will face consequences if their ships are prevented from passing through the region.

Richard Thomas Medhurst is an independent journalist, political commentator, and analyst from the United Kingdom with a focus on international affairs, U.S. politics, and the Middle East.