Israeli Prime Minister Benjamin Netanyahu admitted on Monday, September 15, that Israel is facing a “kind of isolation” internationally as a result of its nearly two-year war in Gaza.
Speaking at a finance ministry conference, Netanyahu cautioned that this isolation could persist for years, urging Israel to adapt both economically and militarily. He said the country’s economy must adopt more “autarkic characteristics,” becoming less reliant on foreign trade. While he admitted disliking the term—having long supported free-market reforms—he said current realities demand it.
Netanyahu pointed to the defense industry as a sector under mounting strain, with several European nations imposing or considering arms embargoes. He argued that Israel must expand its domestic weapons production: “We’ll need to develop our weapons industry – we’re going to be Athens and super Sparta combined. We have no choice, at least for the coming years when we’ll be required to deal with these isolation attempts.”
His remarks amount to a rare acknowledgment of the backlash Israel faces over its Gaza campaign. Humanitarian organizations, the UN, and multiple Western governments have warned that Israel’s widening operations risk worsening civilian casualties, fueling accusations of genocide—which Israel denies—and deepening its isolation.
France, Spain, the Netherlands, Italy, and the UK have either restricted or are weighing restrictions on arms sales. The U.S. remains Israel’s main military supplier and has resisted such measures, though a Biden-era pause on heavy bomb shipments was lifted under the Trump administration.
Domestically, Netanyahu’s position is drawing increasing criticism. Families of hostages held in Gaza, opposition leaders, and segments of the military have argued that expanding the war jeopardizes hostages and weakens Israel’s global standing. Demonstrators in Tel Aviv on Saturday again demanded that the government prioritise the hostages’ release.
Opposition leader Yair Lapid condemned Netanyahu’s comments on X: “Isolation is not fate; it is the result of Netanyahu’s flawed and failed policy.” Former military chief Gadi Eisenkot warned, “There will be no second chance to repair the damage caused by him and his partners who abandoned the hostages and isolated Israel in the world.”
Netanyahu partly attributed Israel’s isolation to what he described as “an extreme Islamist agenda” influencing European policies and rival states such as Qatar shaping global opinion through social media. He cautioned that this could escalate into sanctions and further arms restrictions.
Despite these challenges, Netanyahu insisted Israel’s economy remains strong, citing a rising stock market and declining inflation. “Investing in Israel is the smart thing to do,” he said, pledging to expand local arms production and reduce dependence on what he called “weak Western European leaders who surrender to extreme Muslim minorities in their countries.”
Finance Minister Bezalel Smotrich echoed his message, praising Israel’s economic resilience. Earlier in the day, Netanyahu appeared alongside U.S. Secretary of State Marco Rubio, who reaffirmed Washington’s support for Israel and criticised moves by France, Canada, and Australia toward recognising a Palestinian state ahead of this month’s UN General Assembly.
