Boycotts are isolating the Israeli economy, Benjamin Netanyahu has admitted, as foreign trade halts amid international outrage over its war in Gaza
The Israeli prime minister has said the country may become self-reliant if it were hit by arms embargoes and the suspension of trade.
It comes after heightened international pressure following a UN commission that found Israel is committing genocide in Gaza, citing tens of thousands of civilian deaths and massive destruction, and has called on member countries to punish those responsible for it.
“Israel is in a sort of isolation,” Netanyahu said in Jerusalem on Monday.
He added: “We will increasingly need to adapt to an economy with autarkic characteristics [without foreign trade], the word I most hate.
“I am a supporter of the free market, but we may find ourselves in a situation where our arms industries are blocked.
“We will need to develop arms industries here – not only research and development, but also the ability to produce what we need.”
Yair Lapid, the opposition leader, said it was a “crazy statement”.
“Isolation is not a decree of fate, it is the product of a wrong and failed policy of Netanyahu and his government,” he said.
“They are turning Israel into a third-world country and are not even trying to change the situation.”
Hugh Lovatt, senior policy fellow at the European Council on Foreign Relations, said public boycotts and protests had grabbed the headlines as public opinion swung against Israel.
“A far more significant shift is happening among long-standing supporters of Israel, predominantly on the political Right, who are also becoming increasingly critical,” he said.
“This is true also among European governments, while they have tended to trail behind domestic opinion, they too are now shifting as a result of public anger.
“Again, this shift can also be found in countries ruled by Right-wing coalitions like Sweden, Denmark and the Netherlands.”
A spokesman for the Israeli embassy in the UK said: “Israel is engaged in a defensive war against Hamas, a terrorist organisation that openly seeks the destruction of Israel and the Jewish people, and which continues to hold 48 innocent hostages.
“This war was ignited by a barbaric terrorist attack on a music festival, a place where people from diverse backgrounds gathered to celebrate the unifying power of music and culture. To exclude Israeli artists from international events is not only unjust, it also dishonours the memory of those mercilessly murdered on Oct 7.
“In an increasingly polarised world, preserving cultural dialogue has never been more vital. Boycotting Israeli artists and athletes does nothing to advance peace in the Middle East. On the contrary, such actions embolden extremists who reject any prospect of reconciliation.
“History warns us of the dangers of excluding people on the basis of their nationality or identity, a lesson the Jewish people know all too well. We therefore urge Israeli artists and athletes to continue to embrace their heritage with pride, and to fly the Israeli flag without apology.”