The ongoing conflict between Israel and Hamas has severely impacted various sectors in Israel, including the economy and technology industry, with entrepreneurs like Shelly Lotan facing significant operational challenges and investment slowdowns. The conflict has led to a downgrade in Israel's credit score, a sharp GDP contraction, and a massive decline in tourism, exacerbating the economic strain on businesses. Despite these challenges, Israel's tech sector remains resilient, continuing to attract investments and innovate, particularly in cybersecurity and AI, while government and private sector initiatives strive to support struggling startups.