Netanyahu says end of US military support to Israel is 'only a matter of time'

Israeli Prime Minister Benjamin Netanyahu has claimed that his country must prepare for the end of US military assistance worth tens of billions of dollars, calling the prospect "only a matter of time", adding Israel may need to develop an alternative digital economy to circumvent rising international sanctions.

Speaking just days before hard-fought elections, Netanyahu, who faces an International Criminal Court arrest warrant and ongoing corruption proceedings, told Israel's business broadcaster Channel 10 that he had ordered preparations for potential economic and banking sanctions, including exploring alternative financial technologies.

"If you think we're going to continue receiving what I secured twice, and that's tens of billions of dollars in American aid for the defence budget, prepare yourselves and get used to the fact that it won't happen, because America has changed," he said, apparently referring to growing opposition in the US to such support in light of Israel’s genocide in Gaza, brutal occupation of West Bank, and almost daily killings of Palestinians.

"This is over, and it will end. It is only a matter of time."

Netanyahu gave no date for an end to the assistance and announced no formal US decision, instead calling for preparations for a possible future halt.

On potential sanctions, he said Israel must develop alternative economic and financial mechanisms.

"You have to understand that there could be sanctions, including banking sanctions. You need to prepare an economy that can get around them," he said.

Asked whether blockchain technology could offer an alternative for dealing with economic sanctions, Netanyahu replied: "Yes, that's one of the ways. And I've already asked for a plan to be prepared."

Netanyahu did not specify from which country he expected sanctions.

But his remarks come after UK and several other countries imposed sanctions targeting goods from illegal Israeli settlements in the occupied West Bank in response to a wave of settler attacks on Palestinians and settlement construction approved by Netanyahu's extremist government.

Netanyahu still has a close alliance with US administration but criticism in the US has been rising, especially within the young Americans, since Israel's genocide in Gaza.

Combating 'Jewish terrorism'

Yair Lapid, a centrist former prime minister who is part of the opposition bloc challenging Netanyahu, seized on the remarks.

"Netanyahu now admits, in his own words: if his government is reelected, American security aid will come to an end and Israel will face sanctions that would devastate our economy, lead to runaway price hikes, and cause irreparable damage," Lapid said.

Netanyahu's remarks come as he threatens to resume war on Iran, which under heavy international sanctions has embraced cryptocurrency and other alternative economic measures.

Opposition Democrats party leader Yair Golan also slammed Netanyahu’s remarks, accusing him of being detached from reality.

He argued that preventing economic sanctions requires combating "Jewish terrorism" that damages Israel’s international standing, preserving strategic alliances, and replacing the government in next week’s election.

Golan called for a new government "without Netanyahu, Ben-Gvir and Deri," referring to extremist politicians Itamar Ben-Gvir and Shas party leader Aryeh Deri.

The remarks came four days before Israel’s Tuesday parliamentary elections, amid debate about relations with Western allies and the potential consequences of economic sanctions.

Under a pact signed with Washington in 2016, Israel receives $38 billion in military assistance over a 10-year period set to end in 2028.