Netanyahu warns Israel faces years of global isolation as Gaza war strains diplomacy and economy.
He urges self-reliance in weapons production and trade while critics blame his policies for backlash.
Israeli Prime Minister Benjamin Netanyahu has publicly acknowledged that his country is facing mounting diplomatic and economic isolation due to its nearly two-year war in Gaza, warning that the situation could last for years.
Speaking at a finance ministry conference on Monday, September 15, 2025, Netanyahu said Israel must brace for a new era of limited international support and rethink its dependence on foreign trade and weapons imports. He described the shift as “a kind of isolation” and said it would demand both economic and military adaptation.
The prime minister suggested that Israel’s economy adopt more self-sufficient or “autarkic” features, a term he admitted he once opposed as a free-market advocate. “Circumstances have changed,” he said, adding that the defense sector faces particular strain as European nations restrict arms sales. Netanyahu argued Israel would need to scale up domestic weapons production, telling the audience Israel should aim to be “Athens and super Sparta combined” to withstand years of international pressure.
His remarks represent one of the clearest acknowledgements to date of the backlash Israel has encountered over its Gaza campaign. International agencies and humanitarian groups have warned the military operation is deepening civilian suffering and fueling accusations of war crimes, charges Israel strongly rejects.
A growing list of European countries including France, Spain, the Netherlands, Italy and the UK have imposed or are considering arms embargoes. While the United States remains Israel’s largest military supplier, Washington temporarily delayed some heavy bomb shipments during the Biden administration before reversing the pause under President Trump.
At home, Netanyahu faces mounting criticism from families of hostages held in Gaza, opposition politicians and sections of the military. Protesters gathered again in Tel Aviv over the weekend demanding that the government prioritize hostage releases over expanding the war. Opposition leader Yair Lapid wrote on X that Israel’s isolation is “the result of Netanyahu’s failed policy,” while former military chief Gadi Eisenkot said the government is risking irreversible damage to Israel’s standing.
Netanyahu partly blamed Israel’s growing isolation on “an extreme Islamist agenda” shaping European policies and rival states like Qatar influencing global opinion online. He also warned of potential economic sanctions and further restrictions on weapons imports.
Despite the stark warning, the prime minister pointed to rising stock market indices and falling inflation as signs of resilience, arguing that “investing in Israel is still smart.” Finance Minister Bezalel Smotrich echoed Netanyahu’s claim, saying the economy is holding strong despite the war. Earlier, Netanyahu appeared alongside U.S. Secretary of State Marco Rubio, who reaffirmed Washington’s support for Israel and criticized moves by France, Canada and Australia toward recognizing a Palestinian state before the UN General Assembly.
