Israel: Prolonged war becomes unsustainable

Israel’s economy, already straining under the costs of an ongoing war, now faces new turbulence as Defense Minister Yoav Gallant was fired earlier this week.

Prime Minister Netanyahu’s decision sends a troubling message to investors as Israel grapples with mounting debt, credit downgrades, and slowing growth.

This unexpected shift is causing concerns about Israel’s economic stability. Credit rating agencies have downgraded Israel’s rating, warning of the potential risks to those considering investment.

At a time when stability is key to sustaining investor confidence, signals like these make it even harder for Israel to project resilience and security on the global stage.

These economic realities impact everyday Israelis the most. The costs of war are immense—not only for soldiers and security but for essential services, the cost of living, and the ability for struggling families to stay afloat.