NYN | News
The Hebrew daily Haaretz reported on Monday that Israel has exhausted its last remaining deterrent cards without achieving tangible results, affirming that the Israeli economy is paying the price for Netanyahu’s gamble with Iran in the absence of clear strategic objectives. The paper noted that the economic consequences of the war are unfolding day by day, as confidence grows in its lack of military effectiveness.
According to an analysis published by the newspaper, Israel has depleted its deterrent capabilities without securing notable gains, placing its economy under immense pressure. This includes eroding confidence in Israeli markets, the soaring costs of war, and Israel’s growing exposure to international scrutiny and donor fatigue — especially from the United States.
The paper stated that preliminary estimates suggest the military operations may cost Israel billions of shekels, amid an urgent need for U.S. aid packages to finance the war. However, the Trump administration is reportedly seeking to distance itself from direct support, wary of backlash from its base, which largely opposes foreign entanglements.
This pullback in support, according to Haaretz, opens the door to an imminent funding crisis in Israel, particularly as the budget deficit widens and sovereign lending risks escalate.
The newspaper pointed out that the Israeli stock market has begun experiencing extreme volatility, while foreign direct investment has declined — especially in key sectors like infrastructure, technology, and defense — which have long been pillars of Israel’s innovation-driven economy.
Financial analysts attribute this withdrawal to a lack of strategic clarity and growing investor awareness that a “military victory” is unlikely, making investment in Israel a high-risk gamble.
Haaretz also noted that indicators of domestic confidence clearly show growing public frustration, as citizens increasingly feel they are paying with both blood and money for a war with no foreseeable end.
The report explained that the military operations have worsened Israel’s internal political and economic fragility, while Iran appears more strategically cohesive than it was prior to the strikes.
These economic repercussions are emerging at a time when Israel continues to suffer mounting losses — many of which were set in motion by Sanaa’s earlier strikes on key infrastructure and military-economic targets during previous rounds of escalation. These attacks have contributed to deepening paralysis in the Israeli market and have significantly raised the cost of war in both the short and medium terms.
