Israeli Prime Minister Benjamin Netanyahu has delayed approval of a NIS 25-30 billion increase in the defense budget, despite warnings from the Israel Defense Forces (IDF) regarding a readiness crisis. The IDF has highlighted shortfalls in spare parts and procurement, which may affect its ability to sustain operations amid ongoing conflicts with Hamas in Gaza and Hezbollah in Lebanon, as well as potential threats from Iran. This decision leaves unresolved the IDF’s concerns about its capacity to maintain operational readiness across multiple fronts. This development comes amid a fragile ceasefire with Hamas that has been in place since October 2025. Market pricing suggests a decreased likelihood of Israeli forces withdrawing from beyond the Litani River by the end of the year.
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