Israel has entered such an expensive arms race to contain Iran that its economy is now bending under the weight of this “endless war.” An Israeli analyst warns that if this path does not change, it could push the regime toward a brink of a financial crisis reminiscent of the Cold War era.
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In recent years, maintaining its military superiority over Iran, Israel has embarked on a cycle of extremely heavy spending imposing significant pressure on its budget and economy. Danny Citrinowicz, a security analyst, warns in a new article in Israel Hayom that continuing this trajectory could lead Israel toward cost crises similar to those of the Cold War.
1. Unprecedented Economic PressureAccording to Citrinowicz, for preparedness against Iran, Israel has been forced to allocate enormous budgets to:
▪️Developing new defensive and offensive systems
▪️Rebuilding infrastructure damaged in attacks
▪️Increasing the readiness of military units
This trend has created a significant budget deficit and diverted large financial resources from public sectors to defense.
2. Ongoing Tension and the ‘Endless War’ Strategy
Citrinowicz writes that Israel’s choice to abandon nuclear negotiations with Iran in favor of confrontation has placed it in a permanent state of high alert. Israel believes no agreement can completely remove Iran’s nuclear threat, and this belief has fueled a continuous cycle of military buildup.
3. Domestic Consequences: Pressure on Israeli Society
Dedicating such a large portion of the budget to confronting Iran has directly affected major welfare sectors in the occupied territories—areas such as education, healthcare, and social services.
The author warns that, if continued, this trend could erode Israel’s economy to a degree that ultimately undermines its national security as well.
4. The Author’s Recommendation: Return to Diplomacy
Citrinowicz emphasizes that even an imperfect nuclear agreement could reduce part of the threat and ease the military and financial burden. He believes that dialogue with Iran remains an effective option that could steer Israel away from its current costly path.
