Opinion

Preparing for the Tsunami

What begins with a boycott of “settler products” can easily devolve into a boycott of our entire state.

Michael Oren
September 25, 2026

One of the most peculiar aspects of this election season in Israel is the near-total absence of any party with a serious economic and social platform. Though the price of groceries and housing here remains sky-high, the income gap between rich and poor remains one of the world’s widest, and a million Israeli children languish beneath the poverty line, Israeli voters clearly care more about our complex security concerns. After three years of unremitting war, such a focus can certainly be understood. Yet no Israeli leader—now or in the near future—can afford to ignore the increasing danger of international boycotts and sanctions. They must not be caught off-guard by the economic equivalent of October 7.

The extent of that danger was set out in a recent report published by Mark Dubowitz, the CEO of the highly regarded Washington think tank, the Foundation for Defense of Democracies. Citing the recent decision by Britain to boycott Israeli products made “over the green line,” including in Jerusalem, Dubowitz warns of a chain reaction—“a tsunami”—of international sanctions leveled against Israel. Britain’s precedent, soon to be followed by France, Canada, the Netherlands, and other European countries, can cause strategic damage to Israel’s economy. As a senior Israeli banking official recently asked me, “How am I supposed to do business with anybody living in Efrat or Gilo without getting sanctioned?” And what begins with a boycott of “settler products” can easily devolve into a boycott of our entire state.

Dubowitz explains how the current sanctions against Iran can be redirected against Israel. But while the measures aimed at Iran are designed to bring about a change in some of Iran’s policies if not of its leadership, those directed at Israel would do far more than alter its policy toward the Palestinians or bring down its government. The boycott of Israel will threaten our very existence.

Presented with the existential scenario, many Israelis would respond by saying, “But we can always count on America.” Can we? A recent CNN analysis showed a shocking 67 point drop in popular American support for Israel. Even among young Republicans, a majority no longer views Israel favorably. Tellingly, the Trump administration has refrained from responding to Israel’s requests to punish countries boycotting Israel. Imagine what—if anything—a future Democratic president would do to defend Israel from sanctions.

Israel must not remain passive. We must prepare for this possible tsunami by building up our foreign currency reserves and ensuring that our most productive and talented citizens remain in Israel. We must seek out and develop markets in India, Africa, and South America, and strengthen our technological ties with advanced economies throughout the world. Especially crucial are the high-tech military bonds that Israeli companies are currently forging with the Pentagon. But, along with preemptive economic policies, Israel must demonstrate that we are still interested in peace and willing to take reasonable risks. For Israel, today, neither economic nor diplomatic paralysis is an option.

Originally published on Clarity with Michael Oren on September 25, 2026.