“Israel Entering Isolation”: Netanyahu Admits Economy May Be Forced to Shut Off

Prime Minister Benjamin Netanyahu acknowledged on Monday that Israel is heading toward diplomatic isolation and warned the country may have to adapt to the realities of a “closed” or autarkic economy, remarks that underscore growing concern in Jerusalem about the diplomatic and economic fallout from the war in Gaza.

Speaking at the Accountant General’s conference at the Finance Ministry, Netanyahu said that a sustained “media blitz” in traditional outlets and on social networks has contributed to a form of international isolation that will affect Israel’s ability to import weapons components and could expose the country to economic pressures, including the risk of sanctions. He said Israel may be forced to develop domestic capabilities and “create the independence we need.”

“Countries like Qatar are investing vast sums to influence Western media with an anti-Israel agenda,” Netanyahu said, describing constant online attacks that, in his view, are amplifying Israel’s isolation. “You open your phone and you’re bombarded. On social media it’s even louder than in the traditional press. That puts us in a kind of isolation. Can we get out of it? Yes. We can fight the media, we will have to invest heavily in countermeasures.”

Netanyahu qualified his remarks by stressing he is not an advocate of a fully autarkic economy “I’m a believer in the free market,” he said , but argued that, if necessary, Israel will learn to “operate as a closed economy” to weather isolation pressures.

The prime minister’s comments drew sharp criticism from the political opposition. Yair Lapid, leader of the opposition, called the statement “crazy,” arguing that diplomatic isolation is not inevitable but the product of “wrong and failed policies” by Netanyahu’s government, which, Lapid said, is turning Israel into a third-world state rather than seeking to reverse course.

Netanyahu insisted the government will act to reduce the diplomatic and informational damage, including investments in public diplomacy and counter-messaging, while preparing contingency plans to ensure national resilience if access to international markets tightens. The comments mark an unusually candid assessment from the prime minister about the scope of the challenges Israel faces on the world stage.