News - Middle East: Economic expert Rashid Al-Haddad stated that the partial withdrawal of the Zionist enemy from the Gaza Strip has deepened divisions within the occupation government and revealed shock over the terms of the humanitarian agreement. However, he emphasized that the most severe impact of the war lies in its devastating economic consequences for the Israeli enemy.

Speaking on Almasirah TV’s program “Files”, Al-Haddad noted that even the Hebrew press has begun to “partially admit the massive and unprecedented losses,” acknowledging that these repercussions are the most severe since the establishment of the Israeli entity.

He presented a historical comparison between the economic costs of the Gaza war—Operation Al-Aqsa Flood—and previous wars involving the Zionist regime. According to his analysis, the war’s military expenditures and related costs exceeded $90 billion, pushing the regime’s public debt to 71 percent of GDP.

By contrast, Al-Haddad explained, losses in the 2006 war with the Lebanese Resistance, and in the 1967 and 1973 wars, “did not exceed $5 billion.” He added that the entity has also suffered a massive capital flight, with an estimated $40 billion in Israeli capital leaving the occupied territories, alongside a severe erosion of international reputation and growing economic isolation.

Al-Haddad stressed that Al-Aqsa Flood brought about not only financial devastation but also a collapse in the Zionist entity’s global standing, saying that “Israel enemy’s image has completely vanished” and that recovery “may take years or even decades.”

He identified two main factors behind this unprecedented isolation: The failure to suppress global boycotts, as neither the United States nor its allies can force Arab, European, Asian, or even American consumers to end the economic boycott.

The mass expulsion of investments, as the occupied Palestinian territories have shifted from being a “regional investment hub” to an area that repels both foreign and domestic investors.

The economic expert further noted that the Israeli enemy’s economic indicators remain negative even after the ceasefire, contrary to the normal postwar pattern in other countries.

Hebrew research centers, he said, now predict that “the worst is yet to come,” with record-low growth rates, ongoing stagnation, and continued capital flight.

Al-Haddad concluded that the economic repercussions of the war “cannot be mitigated in the short or medium term.” The Al-Aqsa Flood operation and its supporting resistance activities, he said, have imposed a new economic equation unprecedented in the history of the Zionist entity, marking the greatest economic setback since its establishment in 1948.

Since the launch of Operation Al-Aqsa Flood in October 2023, the Zionist entity has suffered its worst economic and political crisis in decades. Resistance operations from Gaza, Lebanon, and Yemen have disrupted trade, drained resources, and exposed the enemy’s military and financial weakness.

Global boycotts, diplomatic isolation, and capital flight have deepened the crisis, leaving experts to describe Al-Aqsa Flood as the most severe economic setback in the entity’s history, with long-term effects on its stability and regional standing.