Report examines internal and external pressures facing Israel after Gaza war and Iran conflict

A report published by Mehr News examines the interconnected political, economic and security pressures facing Israel in the wake of the Gaza war, the confrontation with Iran and continued insecurity on the northern front. It cites Israeli and international assessments, including a Daily Telegraph report on social and political fissures, while noting that such indicators alone do not amount to a definitive sign of collapse.

On the political level, the report points to disagreements among religious and secular parties, controversy over judicial reforms, the issue of military service for Orthodox Jews and criticism of the cabinet's handling of the October 7, 2023 attack. It cites a June 2026 report by the Israeli Institute for National Security Studies (INSS) finding that 25 percent of respondents expressed high trust in the cabinet while 73 percent expressed low trust; trust in Benjamin Netanyahu was reported at 31 percent high and 67 percent low. The report adds that election results and the formation of parliamentary coalitions could affect the intensity of these disputes, and describes Netanyahu's competition with opponents, including the current associated with Gadi Eisenkot, as extending beyond seats to questions of political accountability, governance and security priorities.

Economically, the report cites the Bank of Israel's annual report estimating the financial cost of the war that began in October 2023 at about 350 billion shekels for 2023 to 2026, a figure it says excludes decisions and costs related to military operations against Iran from late February 2026. Israel's public debt-to-GDP ratio rose from about 60.5 percent at the start of 2023 to 68.5 percent at the end of 2025, according to the report, which identifies military costs, civilian war-related spending and debt financing as pressure factors. It notes, however, that Israel's economy retains capacity for adaptation and that rising debt alone does not constitute economic collapse.

On the military side, the report raises the question of a gap between operational achievements and the realization of political objectives. It says the destruction in Gaza has imposed a heavy human cost on Palestinians, while the continuation of security problems, the future administration of Gaza and disputes over prisoners and captives remain central to evaluating the cabinet's performance. It cites an August 2025 analysis by the International Institute for Strategic Studies on the difficulty of converting military achievements into a sustainable political result, while noting that the institute also referred to Israeli military achievements against Hamas, Hezbollah and Iran. On the northern front, it cites October 2026 reports on Kiryat Shmona indicating continued security concerns, damaged economic activity and dissatisfaction among some residents.

Regarding Iran, the report describes direct war as among Israel's most important security challenges in 2026. It says US and Israeli attacks on Iran from February 28 were met with Iranian retaliatory attacks and an expansion of the war's scope in the region. A September 2026 report by the US Congressional Research Service is cited as showing that the war affected American military bases, regional infrastructure and commercial shipping, and that an April ceasefire and a June 2026 memorandum of understanding did not produce a sustainable agreement, with clashes resuming afterward. The report argues that the main strategic question is not only damage inflicted but the ability to achieve declared objectives, maintain deterrence, manage reciprocal attacks and prevent the war's expansion, adding that Iran has also borne heavy human, economic and infrastructural costs and that any assessment must account for both sides. According to Mehr News, the combination of economic pressure, political disputes, the Gaza war's consequences, northern-front insecurity and the costs of confrontation with Iran has produced a set of interconnected challenges that could reduce Israel's room for maneuver and deepen social fissures.