Israel’s economy is struggling. Economists say ending the war would help

JERUSALEM (AP) — In Jerusalem’s Old City, nearly all souvenir shops are closed. In Haifa’s flea market, forlorn merchants polish their wares on empty streets. Airlines are canceling flights, businesses are failing and luxury hotels are half empty.

Nearly 11 months into the war with Hamas, Israel’s economy is struggling as the country’s leaders grind ahead with an offensive in Gaza that shows no signs of ending and threatens to escalate into a wider conflict.

Prime Minister Benjamin...