Hebron, occupied West Bank – Sufyan al-Qawasmi stood near the rubble of his factories in the Farsh al-Hawa area of Hebron, lamenting the business he watched vanish beneath the debris.

Israeli bulldozers demolished the factories on Friday without any prior warning or notice, following a shooting attack carried out by two Palestinians that morning near Hebron’s western entrance. The attack killed two Israeli soldiers, as well as the two Palestinian gunmen, and prompted Israeli Prime Minister Benjamin Netanyahu to announce a large-scale military operation across Hebron and order preparations for a wider closure of the illegally occupied West Bank.

Demolitions are regularly used by Israel to punish Palestinians, typically the family members of attackers, but in al-Qawasmi’s case, for the misfortune of being close to the site of an attack. Human rights groups decry the practice, which is regarded as collective punishment.

Israeli Finance Minister Bezalel Smotrich justified the demolitions as “establishing deterrence and exacting a price”.

The Israeli bulldozers destroyed a business that al-Qawasmi’s family had built up for his whole life, and provided a livelihood for more than 70 people. The first factory, which produced ceramics, is the same age as he is – it was established 50 years ago. Fifteen years later, the family opened a marble factory.

Their business flourished, becoming one of the most significant industrial operations in the West Bank, with goods exported to Israel.

In the space of a few hours on Friday, the ceramic factory and marble factory were gone, as well as several neighbouring buildings, including a three-storey house and various commercial facilities. Simultaneously, the city faced an Israeli military incursion that included the closure of all entrances, raids, arrests, and the forced evacuation of more than 3,000 Palestinians from their homes, severely disrupting the lives of residents and the city’s commercial activity.

The message was clear: the whole city would be punished for the actions of the attackers.

A devastating loss

Al-Qawasmi says he was given no chance to retrieve goods from the family businesses’ warehouses and factories before the demolitions began, leaving the stock buried under the rubble, where it remains.

“We managed to retrieve some marble slabs and store them in facilities belonging to friends nearby, but most of the stock was destroyed,” he told Al Jazeera.

Al-Qawasmi says that 1,300 square metres of their business’ property was destroyed, including the family’s offices. He estimates the losses at no less than 60 million shekels ($19m).

Those losses are devastating for al-Qawasmi’s family, but also for the wider economy in Hebron and the Palestinian economy as a whole.

According to the Hebron Chamber of Commerce and Industry, Hebron serves as a primary pillar of the Palestinian economy, contributing approximately 42 percent of the Palestinian gross domestic product (GDP). It is home to more than 23,000 economic establishments, including more than 5,000 industrial and artisanal facilities that employ approximately 40,000 workers.

Hebron’s economy is notably diverse, encompassing sectors such as stone and marble, plastics, metals, food production, leather and footwear, and glass, alongside robust commercial and agricultural activity.

Adnan al-Natsha, vice president of the Hebron Chamber of Commerce, told Al Jazeera that there are no precise figures yet regarding the total losses resulting from the Israeli military operation so far. He noted that work is currently under way to compile statistics on the damage inflicted on businesses and homes, losses estimated to be in the millions of dollars.

Al-Natsha explained that the extensive Israeli measures, including closing off areas of the city, displacing residents from their homes, demolishing buildings and shutting down commercial shops, have exacerbated the already difficult economic situation in Hebron – which already has an illegal Israeli settlement in its commercial centre that severely disrupts Palestinian movement and trade there.

“Business owners have been unable to operate their facilities because workers couldn’t reach their workplaces, and employees have been unable to get to their jobs. The impact of these measures is not limited to Hebron; it extends to the Palestinian economy as a whole,” he stated, adding that work was ongoing to assess the losses and damages of the ongoing Israeli operation so far.

Paralysed commerce

The Israeli military continues to lock down Hebron, including the installation of checkpoints, earthen berms, and concrete blocks across the city, as it conducts raids. As a consequence, economic activity has been severely disrupted.

Ibrahim Ahmaro, who owns a vegetable shop in the al-Jalada neighbourhood, one of the areas targeted by the Israeli operation, told Al Jazeera that he had been arranging his stock on Friday, preparing for Saturday, which is typically the busiest day for commerce due to the arrival of buses carrying Palestinian citizens of Israel shopping for cheaper produce.

Military vehicles suddenly stormed the area, and soldiers forced Ahmaro to leave his shop immediately. He says that he wasn’t given an opportunity to turn on the refrigeration units, which would have kept his goods from spoiling, nor allowed to retrieve his vehicle, which remained parked in front of the shop.

“My brother, the staff and I all left, thinking it would only be for a few hours. Instead, we were met with a total lockdown of the area, and we were unable to reach our shops, meaning everything inside was lost after being left unattended for days,” he added.

On Sunday morning, Ahmaro was able to return to check on his stock, despite the heavy military presence in the area. As soon as he entered, he said soldiers attacked him inside the shop and forced him out. He pleaded with them to let him remove at least a few crates; they granted him a few minutes to do so.

“I placed the crates 400 metres away from the shops so that local residents, facing the lockdown, could take whatever they needed. My losses on these goods alone exceed 50,000 shekels [$16,200],” he said with a sigh.

Economic expert Ali Oweiwi said that the Israeli military’s restrictions and lockdowns imposed on Hebron have created significant challenges for commercial and industrial establishments, which rely on road access to transport production supplies and distribute their products.

He explained that the impact of the closure is not limited to retail shops but extends to companies, factories, suppliers, and the transport and logistics sector, not to mention the workers who are forced to take alternative routes to reach their workplaces, all of which ultimately affect consumers.

Oweiwi said that if the Israeli operation concludes within a day or two, the economy might recover relatively quickly. However, if it persists for more than 10 days, it could lead to significant problems, including the accumulation of goods, disruptions to transport and a decline in productivity due to the difficulty of moving both workers and merchandise.

Israel – which will vote for a new parliament in pivotal elections on Tuesday – has not announced an end date for the lockdown in Hebron.

“The destruction of facilities specialising in vehicle dismantling, spare parts, and tile shops has resulted in losses estimated at 70 to 80 million shekels ($22.7m to $26m), in addition to the seizure of dozens or perhaps hundreds of vehicles belonging to the owners of these establishments,” Oweiwi said.