Israeli Prime Minister Benjamin Netanyahu acknowledged on Monday, September 15 that Israel is facing a “kind of isolation” on the global stage, a consequence of its nearly two-year war in Gaza.
Speaking at a finance ministry conference, he warned that the isolation could last for years and said Israel would need to adapt economically and militarily to withstand it.
Netanyahu argued that Israel’s economy must adopt “autarkic characteristics” – becoming more self-reliant and less dependent on foreign trade. “It’s a word I hate,” he admitted, noting that he had championed free-market reforms in the past. But, he added, circumstances had changed.
The prime minister highlighted the defense industry as one of the key sectors under pressure. With growing restrictions on arms sales from European nations, Netanyahu said Israel would have to expand 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,” he said.
His comments mark a rare admission of the backlash Israel faces over its Gaza campaign. Humanitarian organizations, the United Nations, and several Western governments have warned that Israel’s expanding military operations could worsen the civilian toll, fuel accusations of genocide – which Israel strongly denies – and deepen its global isolation.
Several European countries, including France, Spain, the Netherlands, Italy, and the UK, have either imposed or are weighing arms embargoes. The United States remains Israel’s primary supplier of military hardware and has resisted calls for restrictions, though a Biden-era delay on heavy bomb shipments was lifted under the Trump administration.
Domestically, Netanyahu’s stance is increasingly contested. Families of hostages held in Gaza, sections of the military, and opposition figures have urged him to reconsider expanding the war, arguing that it endangers hostages and weakens Israel’s international standing. Demonstrators in Tel Aviv on Saturday once again demanded the government prioritize the hostages’ release.
Opposition leader Yair Lapid blasted Netanyahu’s remarks, writing on X: “Isolation is not fate; it is the result of Netanyahu’s flawed and failed policy.” Former military chief Gadi Eisenkot, who is preparing for a political run, warned that “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 blamed Israel’s growing isolation on what he called “an extreme Islamist agenda” influencing European foreign policy and rival states such as Qatar shaping global narratives through social media. He warned that the situation could escalate into economic sanctions and further restrictions on weapons imports.
Despite his warning, Netanyahu insisted Israel’s economy remains strong, pointing to a rising stock market and falling inflation. “Investing in Israel is the smart thing to do,” he said, vowing to expand domestic weapons production and reduce reliance on “weak Western European leaders who surrender to extreme Muslim minorities in their countries.”
Israeli Finance Minister Bezalel Smotrich echoed that message, praising Israel’s economic resilience amid the war.
Earlier in the day, Netanyahu appeared with U.S. Secretary of State Marco Rubio, who reaffirmed Washington’s close ties with Israel and criticized countries, including France, Canada, and Australia, for moves toward recognizing a Palestinian state ahead of this month’s United Nations General Assembly.
