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Israel’s security and economic conundrum:How does Israel confront the challenges of a protracted war with Iran?

Heba Shoukry
Last updated: 2026/05/02 at 6:44 PM
Heba Shoukry
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Israel has entered a decisive phase of strategic transformation in which economic and security dimensions are intertwined to an unprecedented degree, amid the continuation of conflict with Iran and the multiplication of fronts. The escalation of military operations has entrenched security as the primary driver of economic policymaking, with substantial resources allocated to defense spending within a record budget at the expense of growth trajectories and civilian investment.

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TAGGED: Iran, Israeli, Israeli Economy, National security, War with Iran
Heba Shoukry May 2, 2026
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