Since the outbreak of the “Swords of Iron” war, the Palestinian Authority (PA) has faced a severe fiscal and institutional crisis that has led to numerous assessments regarding its imminent collapse. Yet, as of July 2026, it continues to function and provide basic services. The PA’s survival, despite the dramatic blow to its clearance revenues and the suspension of Palestinian employment in Israel, has been enabled by a significant increase in foreign aid and alternative funding mechanisms. These developments...
A year and a half after the fall of the Assad regime, Syria faces a profound paradox. On the external front, the government led by Ahmed al-Sharaa has recorded significant diplomatic achievements: growing regional and international recognition and a wave of investment pledges from the Gulf states, Turkey, the United States, and Europe. On the domestic front, however, the picture is far more troubling: Syria faces ethnic tensions, security threats, ideological divisions, and a severe economic crisis that is becoming a central source...
The campaign against Iran has expanded to the economic front, centering on Tehran’s attempts to harm the global energy market in order to force the United States to end the fighting. Yet an analysis of market conditions reveals a surprising picture. Although the global economy is showing resilience and can absorb rising prices in the short term, the real point of vulnerability may lie elsewhere. America’s allies in the Gulf could be forced to halt oil and gas production if storage facilities fill up. Should that be the case, the main...
US military aid to Israel has, for decades, constituted a central pillar of the strategic relationship between the two countries and a foundational component of Israel’s national security concept. Beyond its financial scope, this aid serves as an institutional, political, and symbolic anchor of the alliance between Jerusalem and Washington, embodying the United States’ commitment to preserving Israel’s qualitative military edge in a challenging regional environment. The current multiyear agreement (2019–2028), signed in 2016, sets...
In the Horn of Africa and the Red Sea region—areas whose security and strategic importance for Israel have grown significantly over the past two years—lies Somaliland, an independent and pro-Western state that has yet to be recognized by the international community. Its primary objective is to secure recognition and to build alliances with states that can support it vis-à-vis its rival, the Somali government in Mogadishu. In recent years, Somaliland has cultivated close ties with the United Arab Emirates and Taiwan. Its leadership...
Israel may seem far removed from the Arctic, yet it does have interests in the region, spanning defense, diplomacy, and economics. While the defense dimension has generally been beneficial, the diplomatic aspect has, at times, posed major challenges. The economic interests, although notable, are less significant compared to the other two. How Israel manages each of these areas could ultimately determine whether its engagement with the Arctic helps or harms its broader national interests.
The recent visit of Iranian Foreign Minister Abbas Araghchi to Tunisia adds to the mutual decision to abolish visa requirements between the two countries, underscoring Iran’s strong interest in expanding its influence in North Africa in general, and in Tunisia in particular. For the leadership in Tehran, North Africa represents a highly significant geo-strategic region that allows Iran to advance a variety of political, economic, and security interests. Therefore, without a diplomatic move to prevent Iran from pursuing this goal,...
This article reviews and analyzes trends in trade between Israel and China in 2024, set against the backdrop of the Swords of Iron war and the ongoing trade war. Three key developments stand out compared to 2023. First, imports from China rose approximately 20% in 2024, following an 18% drop from 2022 to 2023. Israel continues to import more goods from China than from any other country, and in 2024, about 15% of all goods imported to Israel came from China. Second, Israeli exports to China continued to decline. In 2024, Israeli...
The risks to Israel’s economy have risen in recent weeks, along with the likelihood of a financial crisis in Israel. This is due to three events that occurred simultaneously: the end of the ceasefire in Gaza and the resumption of fighting, the approval of a problematic state budget for 2025, and political instability reflected in the dismissal of gatekeepers and the return of the judicial overhaul. All these raise many questions regarding the fiscal responsibility of the Israeli government in general, and the financing of the war in...
The 2025 state budget, set at NIS 607 billion, was approved by the government on November 1 after contentious debates within the coalition. The government aimed to present a budget that would support the country’s growing security needs and the populations affected by the war while also reducing the deficit and encouraging economic growth. In practice, the approved budget should meet Israel’s security needs, but it is doubtful whether it will address the country’s broader economic needs. The unwillingness to significantly cut...
After a year of war, it is time to reassess Israel’s fundamental strategic alternatives and the contrasting views that have figured prominently in the professional disputes, media opinions, and public discourse regarding the war, its trajectory, and continuation since its outbreak.
The tightening of relations between China and Iran is considered one of the main factors preventing the collapse of Iran’s economy, which has been subject to sanctions since the United States withdrew from the nuclear agreement in 2018. This improvement in relations began at the height of the COVID-19 crisis when the two countries signed a long-term cooperation agreement aimed at strengthening their economic ties in the following years. However, in practice, this partnership has been very limited and fundamentally asymmetric. Despite...
