Israel faces years of isolation over Gaza war

Netanyahu warns of a lasting international backlash as Israel braces for a tougher economy and greater self reliance amid the Gaza war.

Israel faces years of isolation over Gaza war

Netanyahu told a finance ministry conference that Israel faces a kind of isolation that could last for years and that the country must stand on its own. He said the economy must adapt to autarkic characteristics, becoming more self sufficient and less reliant on external trade. He noted that the term autarkic is one he dislikes but he believes a free market revolution has already begun. He called for developing a domestic weapons industry to reduce dependence on foreign arms imports and used a vivid line: we will be Athens and Sparta combined.

Netanyahu's remarks come as international backlash grows over the Gaza war. France, the Netherlands, the UK, Spain, Italy and others have signaled arms restrictions. The United States remains the main supplier and has warned others against restricting weapons. In Israel, opposition figures including Yair Lapid dismissed the isolation claim as crazy, while former general Gadi Eisenkot warned of no second chance to repair the damage. Still, Netanyahu pressed ahead, arguing that Israel's stock market remains strong and that the economy will weather the pressure.

The speech frames isolation as a strategic vehicle and signals a shift toward greater self reliance. It suggests a push to expand defense production and lessen foreign dependency, a move with potential long term costs for investors and trade partners. At the same time, it risks widening frictions with key allies who see sanctions as miscalculated during a volatile regional moment. The reliability of the US as the main arms supplier becomes even more central to the calculus, underscoring a realignment rather than a simple economic adjustment.

The remarks also reveal political calculations. By casting the conflict as a test of national resilience, Netanyahu may aim to shore up support at home as critics warn that broader conflict and sanctions could hurt ordinary people. The dynamic with Washington remains important, dependent on diplomacy as the war evolves and on how partners balance political pressures with security needs.

Highlights

The coming weeks will reveal how far self reliance can sustain a nation at war.