Prime Minister Benjamin Netanyahu said Friday that Israel must prepare an economy capable of operating around international sanctions, including possible restrictions on its banking system, and suggested digital currencies and blockchain technology could provide alternatives. He also warned that Israel should prepare for the eventual end of American military assistance as the United States changes.
Speaking to Roy Katz on Israel's Economy Channel just days before the October 27 election, Netanyahu acknowledged his concerns over economic measures that some Western countries have already begun imposing on Israel and the possibility that they could expand to the financial sector.
"Of course I'm concerned," Netanyahu said. "You have to understand that there could be sanctions, including banking sanctions. You need to prepare an economy that can get around them. And you know what that is. You know about digital currencies, and I'm working on that too. And there are other things."
Asked specifically whether he was referring to blockchain technology as an alternative, Netanyahu replied: "Yes, that's one of the ways. And I've already asked for a plan to be prepared."
The prime minister also addressed the future of American military assistance to Israel, warning that the country could no longer assume Washington would continue providing the tens of billions of dollars in defense funding secured through previous agreements.
"If you think we're going to continue receiving what I secured twice, tens of billions of dollars in American aid for the defense budget, get used to the fact that we won't, because America has changed," Netanyahu said. "It's over. It's only a matter of time."
Sanctions and restrictions spread across dozens of countries
Netanyahu's remarks come as a growing number of countries impose or consider economic, financial and diplomatic measures against Israel. A database launched by the Jewish People Policy Institute (JPPI), tracking sanctions and other restrictions worldwide, documents 139 measures across 64 countries and entities, according to its October 18 snapshot. Of these, 111 are classified as active, including 17 academic measures, while 19 are historical and nine remain proposed or planned.
The database allows users to examine restrictions by country, category and status, displaying their geographic spread on an interactive global map. The measures cover multiple sectors, including finance, defense, trade, diplomacy, law and academia, illustrating how international pressure on Israel extends beyond any single industry.
An earlier breakdown of the data cited by ynet identified 40 financial measures, representing roughly one-third of the restrictions recorded at the time. Defense and trade followed with 24 measures each, alongside 14 diplomatic and 12 legal measures.
The earlier breakdown placed Spain at the top of the list with 10 measures, followed by the United States with eight, all of which concerned academia rather than government economic sanctions. Britain followed with seven, while Belgium and Turkey had five each.
The institute emphasizes that the number of measures is not necessarily an indication of their severity or economic impact. A single sweeping restriction could have substantially greater consequences than several more limited measures. The database is therefore intended primarily to illustrate the scale and geographic spread of the phenomenon.
Although many of the restrictions are concentrated in Europe, the database also records measures originating in North America, Latin America, Asia, Africa and Oceania.
Economists warn of severe damage to Israel's economy
Earlier this week, more than 60 economists, academics and former senior public officials signed a warning letter issued by the Economists Forum, arguing that international measures against Israeli settlements in the West Bank pose a serious threat to the country's economy.
The signatories warned that violence and attacks by Jewish extremists against Palestinians could carry a heavy economic price that would ultimately be paid by all Israeli residents.
The letter cited Britain's announcement of plans to prohibit imports from Israeli settlements and consider sanctions against companies and individuals involved in their expansion. It also referred to measures in the Netherlands and proposals under consideration in other countries, particularly France and Canada.
According to the economists, the immediate triggers include construction in the E1 area, a controversial settlement development zone east of Jerusalem, and attacks by Jewish extremists in the West Bank, which the signatories said are perceived internationally as receiving government backing. The broader context, they argued, is Israeli government policy, particularly in Gaza since October 7.
The economists warned that the damage could become far more serious if measures currently limited to several countries spread across a substantial portion of Europe and expand from settlements to the Israeli economy as a whole. Such a development, they said, could cause a significant deterioration in Israel's economic relations with Europe and inflict substantial macroeconomic damage.
Ed Miliband at the British Labour Party conference
(Photo: Oli SCARFF / AFP)
They also pointed to growing momentum behind sanctions and private-sector initiatives in numerous countries. Drawing on international experience, they warned that such restrictions could drive up the cost of living, adding further pressure on Israeli households already struggling with rising prices.
Recent figures showed a sharp increase in food prices, with the rate of inflation in a typical grocery basket over the past four years nearly five times that recorded during the preceding four-year period. The economists warned that broader sanctions could make an already difficult situation considerably worse.
The forum called on the government to change policies that deepen Israel's international isolation and prevent further economic damage before it becomes irreversible.
Its message was that continued construction in E1 and the failure to prevent violence by Jewish extremists threaten Israel's vital economic relationships with other countries, and ultimately the Israeli economy itself. The damage, the economists warned, must be prevented while there is still time.