Israeli report warns of isolation, financial deficit if Trump’s Gaza Plan fails

An Israeli economic study has warned of severe repercussions for the country’s economy if the US President Donald Trump’s ceasefire plan is not implemented and the war in Gaza continues.

The report, published by the Aharon Institute for Economic Policy at Reichman University and cited by the business daily Calcalist, outlined three possible scenarios. It warned that a full occupation of Gaza would result in “international isolation, a massive financial deficit, and a sharp decline in living standards.” Continuing “hostilities” without a settlement, it added, would also exact a heavy economic toll.

According to the study, only the implementation of Trump’s 21-point plan could put Israel “back on the right path” by halting the fighting and stabilising the economy.

The report noted that two years after what it described as Israel’s “worst security failure since the state’s founding,” the conflict has deeply entangled the economy. While Trump’s initiative showed signs of progress over the weekend, it has yet to bring about a definitive end to hostilities.

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