New War with Iran Will Have Serious Consequences for Israel: Lawmaker

Israeli officials from the Ministry of Finance have expressed deep concern regarding the economic repercussions of a potential new military conflict with Iran. This information was reported by the Israeli portal 'YnetGlobal.'

A senior representative of the Ministry of Finance noted that a new war with Iran should be viewed through a very serious economic lens, as the damage to the economy could be enormous.

According to him, additional defense expenditures, as well as compensating for the direct and indirect losses incurred by families and businesses, could put the government in three undesirable choices: increasing the state budget deficit, a double breach of budgetary frameworks until the full approval of the 2026 budget—similar to what occurred in the past two years—or significant financial cuts in ministries and the potential implementation of new taxes.

Officials pointed out that the latter option is particularly politically risky in an election year and could lead to serious discontent.