At a time when Israel has waged its third war in two years, an analysis has found that the country’s economy will shrink by 5% from wars in the coming time.

Hezbollah, Iran’s most powerful regional ally, has signaled privately that it does not intend to attack Israel, but Lebanon’s military has bolstered its presence in the country’s south to prevent rocket fire.

Domestic political concerns, as well as tough losses suffered in nearly two years of regional conflicts and upheavals, appear to have led these Iran allies to take a back seat in the latest round convulsing the region.