Israel Faces Accelerating Isolation: What About Its Economy?
The newspaperCalcalistUntil156 countries, including three from the G7, now recognize the State of PalestineIn a strategic shift that weakens the Israeli narrative and strengthens the Palestinian position on the international arena, while the chances of normalization with Saudi Arabia, which linked any agreement to the cessation of the war in Gaza and the establishment of a Palestinian state, have declined.
According to the newspaper,France, Britain and CanadaThree G7 countries were the most serious blow to Tel Aviv, after breaking the traditional pro-Israel alignment, while the United States, Germany, Italy and Japan are still reluctant to take a similar step.
On the other hand, lookingFor the first time since the signing of the Association Agreement, the EU suspends or cancels the Free Trade Agreement with IsraelThe Union is Tel Aviv's largest trading partner, with more than $50 billion in trade annually. Observers believe thatItaly may be the deciding factor, especially after her prime minister, Georgia Melloni, harshly criticized Israel and declared her support for European sanctions.
The existing agreement allows the passage of Israeli goods without customs duties, but canceling it would mean imposing duties ranging from3 and 6On exports, which inflicts heavy losses on the Israeli economy and puts it under the stigma of "partner polluted by human rights violations," a reputation sufficient to keep international companies and banks from dealing with Tel Aviv.
And warnCalcalistThe risks do not stop at the limits of official sanctions, but extend to the image of Israel in global markets, as major financial institutions - banks, insurance companies and investment funds - began to classify it as a "high-risk economy", which raises the cost of borrowing and reduces foreign direct investments.
As for the Saudi position, it is seen inside Israel asNew strategic predicamentAfter Riyadh confirmed that it would not proceed with any normalization except within the framework of the establishment of a Palestinian state, contrary to previous estimates in Tel Aviv, which were betting on a deal that would go beyond the Palestinian issue.
In contrast, Israel, according to the same newspaper,Entirely mortgaged to US President Donald Trump, which promised to use its veto power in the Security Council to block any recognition of the State of Palestine. However, his deal-making approach to foreign policy makes his support vulnerable to becoming a tool of political or economic blackmail in the future.
It concludes analyticsThe MarkerandCalcalistthat Israel is moving at an accelerated pace towardsStifling international isolation and long-term strategic losses, in a scene that is redrawing its position within the global system in an unprecedented way.