Israel: A Bad Brand in World Markets

CrossFireArabia
Analyses, Opinion
August 27, 2025

By Ramzy Baroud

In an important step toward the economic isolation of Israel due to its genocide in Gaza, Norway’s Government Pension Fund Global has decided to divest from yet more Israeli companies.

Norway’s sovereign wealth fund is the world’s largest, with total investments in Israel once estimated at $1.9 billion. The decision to divest was taken gradually but is consistent with the Norwegian government’s growing solidarity with Palestine and rising criticism of Israel.

Taking a leading role along with Spain, Ireland, and Slovenia, Norway has been a vocal European critic of the Israeli genocide and man-made famine in Gaza, actively contributing to the International Court of Justice’s investigation into the genocide, and formally recognizing the state of Palestine in May 2024. This diplomatic and legal stance, coupled with its financial divestment, represents a coherent and escalating effort to hold Israel accountable for the ongoing extermination of Palestinians.

The Israeli economy was already in a state of free-fall even before the genocide. The initial collapse was related to the deep political instability in the country, a result of Israeli Prime Minister Benjamin Netanyahu and his extremist government’s attempt to co-opt the judicial system, thus compromising any semblance of “democracy” remaining in that country. This resulted in a significant lowering of investor confidence.

The war and genocide, beginning on October 7, 2023, only accelerated the crisis, pushing an already fragile economy to the brink. According to reports from the Israel Ministry of Finance, foreign direct investments in Israel fell by an estimated 28 per cent in the first half of 2024 compared to the same period in 2023.

Any supposed recovery in foreign investments, however, was deceptive. It was not the outcome of a global rallying to save Israel, but rather a consequence of a torrent of US funds pouring in to help Israel sustain both its economy and the genocide in Gaza, along with its other war fronts.

Israel’s Gross Domestic Product was estimated by the World Bank to be around $540 billion by the end of 2024. The war on Gaza has already taken a considerable bite out of Israel’s entire GDP. Estimates from Israel itself are complex, but all data points to the fact that the Israeli economy is suffering and will continue to suffer in the foreseeable future. Citing reports from the Bank of Israel and the Ministry of Finance, the Israeli business newspaper Calcalist reported in January 2025 that the cost of the Israeli war on Gaza had already reached more than $67.5 billion. That figure represented the costs of the war up to the end of 2024.

Keeping in mind that the ongoing war costs continue to rise exponentially, and with other consequences of the war, including divestments from the Israeli market by Norway and other countries, future projections for the Israeli economy look very grim. The Israeli Central Bureau of Statistics reported that the Israeli economy, already in a constant state of contraction, shrunk by another 3.5 per cent in the period between April and June 2025.

This collapse is projected to continue, even with the unprecedented US financial backing of Tel Aviv. Indeed, without US help, the precarious Israeli economy would be in a much worse state. Though the US has always propped up Israel, with nearly $4 billion in aid annually, the US help for Israel in the last two years was the most generous and critical yet.

Israel is the recipient of $3.8 billion of US taxpayer money per year, according to the latest 10-year Memorandum of Understanding signed in 2016. Equally, if not more valuable than this large sum are the loan guarantees, which allow Israel to borrow money at a much lower interest rate on the global market. The backing of the US has, therefore, enabled investors to view the Israeli market as a safe haven for their funds, often guaranteeing high returns. This applies to the Norwegian sovereign wealth fund as it did to numerous other entities and companies.

Now that Israel has become a bad brand, affiliated with unethical investments due to the genocide in Gaza and growing illegal settlement expansion in the West Bank, the US, as Israel’s main benefactor, has stepped in to fill the gaps.

The US emergency supplemental appropriations act of April 2024 allocated a total of $26.4 billion for Israel. While much of the money was earmarked for defense expenditures, in reality, most of it will percolate into the Israeli economy. This amount, in addition to the annual military aid, allows the Israeli government to minimize spending on defense and allocate more money to keep the economy from shrinking at an even faster rate.

Additionally, it will free the Israeli military industry to continue producing new, sophisticated military technology that will ensure Israel’s continued competitiveness in the arms market. The military-industrial complex, a significant part of the Israeli economy, is thus not only sustained but given a fresh impetus by American aid, ensuring the war machine continues to function with minimal financial disruption.

All of this should not diminish the importance of divestment from the Israeli financial system. On the contrary, it means that divestment efforts must increase significantly to balance out the US push to keep the Israeli economy from imploding.

Moreover, this should also make US citizens, who object to their government’s role in the genocide in Gaza, more aware of the extent of Washington’s collaboration to save Israel, even at the price of exterminating the Palestinians. Indeed, the flow of funds from the US is not a passive action; it is an active collaboration that directly enables the Israeli genocide in Gaza.

Ramzy Baroud is a journalist, author and the Editor of The Palestine Chronicle. He is the author of six books. His forthcoming book, ‘Before the Flood,’ will be published by Seven Stories Press. His other books include ‘Our Vision for Liberation’, ‘My Father was a Freedom Fighter’ and ‘The Last Earth’. Baroud is a Non-resident Senior Research Fellow at the Center for Islam and Global Affairs (CIGA). His website is www.ramzybaroud.net

Jordan Times

CrossFireArabia

Dr. Marwan Asmar holds a PhD from Leeds University and is a freelance writer specializing on the Middle East. He has worked as a journalist since the early 1990s in Jordan and the Gulf countries, and been widely published, including at Albawaba, Gulf News, Al Ghad, World Press Review and others.

Opinion

The US General Who Swallowed His Own Truth

CrossFireArabia
March 6, 2026

By Jassem Al-Azzawi

General Dan Kaine, Chairman of the Joint Chiefs of Staff, delivered a confidential warning to President Trump with the utmost candor—the kind of candor that democracies rely on and empires routinely ignore. He said: “We don’t have enough ammunition to win this war. It’s not going to be pretty.” This warning wasn’t born of cowardice; it was the last vestige of institutional integrity that still flickers within the halls of American military power.

Trump’s response was that of a circus clown, not a commander-in-chief. Through his “Truth Social” platform—that distorted mirror of American political life—he dismissed the warning with the arrogance of a street vendor, saying: “Oh, no, no, no. If we do it, we’ll win easily.” Thus, a sober assessment became mere publicity, and caution a lie.

But the biggest lie came later. When Kaine’s warning leaked, Trump not only rejected it but completely reversed it. With the confidence of a man who has never been held accountable for anything, he told the American public the general had said the exact opposite—that the United States had plenty of missiles, munitions, and everything else. “That’s not what he said at all,” Trump declared, putting words of false victory in the mouth of a man who had offered only warnings.

And General Cain remained silent

This silence is not just a footnote in this story; it is the story itself. By remaining silent, Cain allowed the American public to absorb the falsehood as truth. He did not say: “No, Mr. President, that’s not what I said.” He did not invoke his oath, nor the soldiers who would pay with their lives for the gap between political rhetoric and logistical reality. He chose the safety of silence over the danger of truth, and in doing so, he betrayed not only himself but the Republic. This is the rot at the heart of American militarism.

As historian Andrew Bacevich has long warned, the professional military has become more of an instrument of imperial ambition than a defender of democratic values, with senior officers more concerned with their next post than with the Constitution they swore to uphold. Kaine’s silence was not a mere slip of the tongue; it was a symptom of a deeper malaise.

The logistical picture Kaine described in private was not theoretical; the calculations were unforgiving.

Current stockpiles of interceptor missiles and precision munitions could not sustain a prolonged air campaign against a country three times the size of Iraq. The Wall Street Journal documented a “worrying gap” in U.S. missile stockpiles, noting that reserves were “far below” the requirements of intensive and sustained operations. Pentagon contractors were instructed to “double or even quadruple” production of Patriot, SM-6, and precision-strike missiles—a tacit admission that the arsenal built for Cold War scenarios is inadequate for the war being fought today.

Consider Gaza: Israel, the most heavily armed military power in the Middle East, with complete air and naval dominance, has turned a tiny coastal strip into a moon-like landscape of devastation over two and a half years, yet it has not broken Hamas. Gaza is only 37 kilometers long. Iran, on the other hand, is a nation of 90 million people, with mountainous terrain, strategic depth, fortified infrastructure, and a combat-hardened Revolutionary Guard. The idea that it will collapse under a few weeks of American airstrikes is not strategy; it is wishful thinking. “God help us if this continues, if it gets to four weeks,” Colonel Daniel Davis warned on the Deep Dive podcast. He was speaking in military terms, and the same prayer applies. Politically.

When Trump now raises the prospect of sending ground troops, he is not escalating from a position of strength, but rather improvising from a position of denial. Admitting that air power and missiles alone cannot achieve the political objective is an admission that the original objective was never honestly assessed. This is the pattern of American wars at the end of an empire: Glittering promises, disastrous calculations, and then a grim and horrific reckoning paid in blood by those who had no seat at the table where the lies were told.

The costs are already piling up—not just in the currency of munitions and riches, but in the currency that empires always ultimately spend and regret most: credibility. America’s word, already devalued by two decades of contrived justifications for war, is getting cheaper by the day.

Democracies can tolerate miscalculations, and they can tolerate bad presidents, but what they cannot long tolerate is the institutionalization of a culture where the truth is whispered behind closed doors and swallowed whole in front of cameras. When the chairman of the Joint Chiefs of Staff allows his words to be weaponized for propaganda — when the man in charge of counting missiles refuses to correct a president who pretends they are plentiful — something far greater than military credibility collapses.

What is crumbling is the social contract between the governed and those who send them to their deaths.

Caine’s silence was not cautious; it was complicity. And in an imperial machine suffering from a shortage of ammunition and a shortage of truth, complicity is the only resource that seems inexhaustible, because when the missiles finally run out, slogans won’t replace them.

Reality will.

Al-Azzawi is an Iraqi writer who contributed this piece to Al Rai Al Youm which was translated and appeared in crossfire.com

Opinion

‘They Don’t Know Iran’s Military Lexicon’: First Six Days of The Aggression

CrossFireArabia
March 5, 2026

By Abdul Bari Atwan

They truly don’t know Iran. By this, I mean the Israelis and the US, and even some Arab leaders, none of whom dared to condemn the aggression. But the aggression entered its sixth day without the regime falling, and/or the new interim leadership rushing to the nearest negotiating table to surrender. The following factors need to be considered.

The battlefields:

First: The downing of an advanced American fighter jet, the F-15, by Iranian missiles in the west of Iran, a firstever development. This suggests the Iranian military leadership may have developed new missiles capable of achieving this feat, or they acquired them from their Chinese and Russian allies, or both, particularly the Russian S-400 and S-500 missile systems.

Second: The entry of Hezbollah’s ballistic missiles into the arena, striking deep inside Israel, specifically Tel Aviv and Haifa, for the first time after 15 months of restraint and the rebuilding of its military arsenal, and/or what was destroyed during the Israeli aggression. This means that no area in the Zionist entity will be safe.

Third: The fiery speech delivered by Sheikh Naim Qassem, Secretary-General of Hezbollah, containing strong unprecedented tone statements most notably: “We will not surrender and we will defend our land, no matter the sacrifices and despite the disparity in capabilities. We will not surrender.”

Fourth: The introduction of the fastest “infiltrating” drone into the Iranian Air Force for the first time. Named “Hadid 110,” it has a speed of 517 km/h and, according to Western military experts, is considered more efficient than its sister drone, “Shahed,” which performed well deep inside Israel. Its production costs only $35,000, while shooting it down costs $4 million.

Fifth: Every day of resistance by the Iranian army and people costs the occupying state approximately $1 billion. As for America, the costs of the war has already nearly spiralled to $160 billion in the first six days. These preliminary estimates are likely to rise, especially after the bombing of aircraft carriers and the destruction of warships, the increasing number of dead and wounded, the largest military buildup since the Iraq War, and the rise in energy prices.

Sixth: The fulfillment of the promise to close the Strait of Hormuz, which means delivering two fatal blows. The first is to the Western economy because oil and gas prices would likely reach record-breaking figures, and the second, for the Arab states who host the US military bases. Closing the Strait means preventing their oil and gas exports from reaching global markets, and the losses will increase while oil and gas revenues decrease depending on the war’s duration and developments.

The Iranians wanted from the outset a regional war of attrition with no end in sight in direct opposite to the new American warefare military doctrine, which aims for short, swift, and clean wars (without American casualties). The Iranians resolved to bomb all those cooperating with the aggression in the region. This new Iranian theory was best and most clearly expressed by Sheikh Naim Qassem when he called on the Israeli army to prepare for many days of fighting with all available means.

Defeat, surrender, and raising the white flag, individually or collectively, have no place in the Iranian military and political lexicon. In the first six days, the Iranian army launched 500 hypersonic missiles with multiple cluster warheads and more than 2,000 drones, resulting in the displacement of more than 7 million settlers to shelters and tunnels, and the destruction of large parts of Tel Aviv and Haifa.

Neither the 47-year-long starvation siege, nor three Israeli-American aggressions within a few years, nor the incitement of popular protests and the planting of spies among the protesters, nor the deployment of aircraft carriers and warships, nor inflation and the collapse of the national currency, succeeded in defeating the mighty and unwavering Iranian will, and consequently, in toppling or changing the regime.

Our proof is they baffled the Americans in negotiations that lasted more than two years in Vienna and in several other Arab and European capitals, and they never conceded. They rejected all American conditions, starting with halting enrichment and handing over 460 kilograms of highly enriched uranium, and even refusing to allow the inclusion of the Iranian missile industry or severing ties with resistance factions on the negotiating table.

Yes, arrogance, conceit, and the unfortunate complicity of some Arabs blinded them to the true nature of Iran, and they will pay a very heavy price, the most prominent feature of which will be the destruction of all Israeli gas infrastructure. In the Mediterranean, water and electricity stations, and the lack of distinction between settler and soldier, many assumptions have changed after the massacre of the children’s school in southern Iran… and time will tell.

This opinion was written in Arabic by the chief editor of Alrai Al Youm Abdul Bari Atwan and translated for crossfirearabia.com

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Israel: A Bad Brand in World Markets

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