According to Israeli outlet Walla, the signatories of a joint statement estimate that governing Gaza militarily would cost over 60 billion shekels ($16 billion), straining Israel’s public budget and potentially leading to significant tax hikes, damage to Israel’s credit rating, and possible international economic sanctions.

Why it matters:

A group of 80 Israeli economists and former officials has issued a stark warning about the financial fallout of a full military occupation of Gaza, saying it could trigger a deep economic crisis.

The big picture:

The warning comes as the Israeli regime continues to weigh military and political options for Gaza following recent escalations. Experts caution that hasty decisions without economic foresight could destabilize Israel’s financial system.

Zoom out:

Channel 12 reports that Israeli Occupation Forces (IOF) Chief of Staff Eyal Zamir acknowledged in a security briefing that even after occupying Gaza City, defeating Hamas entirely may not be achievable. Military estimates suggest the occupation could take six months, with full clearance requiring even longer.

What to watch:

As Israel navigates its next steps, economic voices are urging a more measured approach, highlighting the long-term costs of short-term military gains.

Hossein Amiri - Hossein Vaez