Israel's borrowing costs rise as war in Gaza strains economy

Israel's borrowing costs are increasing as the country continues to finance its war in Gaza. The direct cost reached 100 billion shekels ($26.3 billion) by August, with estimates potentially rising to 250 billion shekels by 2025. Foreign investment has decreased, with global funds owning the least amount of Israeli stocks in a decade. Credit ratings have been downgraded, and the cost of insuring Israel's debt is at a 12-year high. The ongoing conflict, including recent actions in Lebanon, is straining Israel's financial situation. The budget deficit is also growing, reflecting the economic impact of the prolonged war.