“Operation Rising Lion concluded with an unequivocal Israeli victory, yet additional confrontations with Iran are inevitable,” Defense Ministry Director-General Maj.-Gen. (res.) Amir Baram said Monday.
“The Iranian regime, operating from a position of strategic humiliation, is massively investing in security infrastructure and pursuing accelerated force-building initiatives,” he said at the Finance Ministry Accountant-General Conference in Jerusalem.
Tehran’s nuclear program has been pushed back at least two years, according to most estimates.
The Islamic Republic retains about 50% of its ballistic-missile capacities, however, as well as wide-ranging capacity to promote terrorism around the region and the world.
However, the Islamic Republic retains around 50% of its ballistic missile capacities as well as a wide range of capabilities to promote terror around the region and the world.
Yemen’s Houthis, whose weapons have been provided mostly by Iran, continue to launch aerial threats against Israel several times a week or even the same day.
In addition, senior Israeli intelligence officials have warned that Iran remains furious at how badly it was beaten by Israel during the June war. Most likely based on this, Baram predicted there would be more rounds of fighting between Jerusalem and Tehran.
Moreover, numerous foreign reports have said China is helping restore much of Iran’s military capabilities, with some lingering fears that Russia may assist in this as well.
“Lessons learned from current operations, combined with global trends toward de-globalization and delegitimization, necessitate expanding Israel’s local production capacity, achieving independence in critical components, and securing long-term strategic partnerships through sophisticated contractual arrangements,” Baram said.
Growing boycotts on Israel's arms deals
A growing number of countries are boycotting arms deals with Israel, while others are still conducting arms trade with it but have tried to sometimes leverage this trade to influence Israel’s war and peace policies, leading to a renewed focus on producing as much weaponry as possible domestically.
Regarding the global security situation, Baram said: “We are witnessing a dramatic surge in defense budgets worldwide. Global defense expenditures in 2024 reached approximately $2.7 trillion, representing a 20% increase compared with 2023 – the most substantial increase since 1988.”
Regarding the war’s impact on the Israeli economy, he said: “Despite the war’s prolonged duration, with economic costs exceeding NIS 205 billion, our economic indicators demonstrate resilience, particularly following strategic security successes such as the pager operation and Operation Iron Swords.
“The CDS [Credit Default Swap] index and exchange rates [shekel-dollar] are more robust today than before October 7, 2023. Despite the war’s continuation and enormous challenges – including attrition, escalating costs, and societal strain – a positive correlation exists between these indicators that reinforces our economic stability and reflects a declining risk premium.”
Despite Baram’s reassurances, many non-defense sectors in the economy have suffered or are suffering long-term harm both directly from the war interrupting business and indirectly from its effect on Israel’s brand globally.
Regarding future threats from Iran and other adversaries, Baram said: “We must invest immediately in anticipating ‘the next strategic surprises’ and developing capabilities for future asymmetric operations. This represents the essence of defense economics. Consequently, we must fundamentally transform our production and procurement processes for critical defense systems.”
“In the past week alone, we finalized agreements totaling $2.5b.,” he said. “While confidentiality prevents me from identifying our partner nations, these governments clearly recognize the strategic value of sustained security investments in today’s volatile global landscape.”
“Our strategic approach prioritizes the development of Israel’s defense-tech sector while reinforcing our distinctive national innovation ecosystem,” Baram said. “Recently, we launched a joint investment fund in partnership with the [chief scientist of the Defense Ministry], specifically designed to establish defense-tech as a primary economic catalyst, expand our defense export portfolio, and fulfill critical IDF operational requirements.”