Published by Global Banking and Finance Review
Posted on September 15, 2025
By Steven Scheer
JERUSALEM (Reuters) -Israel needs to invest heavily in "influence operations" in traditional and social media to counteract economic isolation arising from negative publicity abroad, Prime Minister Benjamin Netanyahu said on Monday.
Speaking at a Finance Ministry conference, Netanyahu said foreign investment into Israel had held up in the wake of a 12-day war against Iran in June, which he said removed an immediate threat of a nuclear-armed foe.
But in a rare acknowledgment of the isolation arising from international criticism of Israel's war in Gaza, he said Israel faced an economic threat of sanctions and other measures.
He blamed isolation on minorities in Europe pushing "anti-Zionist and extreme Islamist ideology", and on countries such as Qatar, backer of Arabic broadcaster Al Jazeera, investing in shaping global discourse through social media.
"This leads to sanctions against Israel and alters Israel's international standing ... and this leads to a kind of isolation for Israel," Netanyahu said. "We can break out of this isolation, but we must invest heavily in countermeasures — particularly in media and social media influence operations."
Netanyahu said Israel should reduce the dependence of its industries on trade with other countries.
"We might find ourselves blocked not only in R&D but also in actual industrial production. We must start developing our capabilities to rely more on ourselves," he said, adding that should also include arms and other defence products.
In a response, opposition leader Yair Lapid said international isolation was "the product of a wrong and failed policy by Netanyahu and his government.
"They are turning Israel into a third world country and are not even trying to change the situation," he wrote on X. "Israel can return to being successful, popular, with a thriving first-world economy."
The war in Gaza was triggered by a rampage into southern Israel by Hamas militants who killed around 1,200 people and captured 251 hostages, according to Israeli tallies. Israel responded with an assault that has killed more than 64,000 people, according to Palestinian health authorities.
On Monday, a group of 80 former Bank of Israel, Finance Ministry and other economists, said a cabinet decision to occupy Gaza would be harmful to both Gaza and Israel, citing economic damage from massive costs of maintaining a military presence and sanctions from Europe that would harm trade.
(Reporting by Steven ScheerEditing by Peter Graff)
