WSJ: Full control of Gaza could cost Israel $10 billion per year

Israel is considering the full military occupation of the Gaza Strip, a move that could cost the country an estimated 35 billion shekels—roughly $10 billion—annually, according to The Wall Street Journal, citing Esteban Klor, a professor of economics at the Hebrew University of Jerusalem.

The potential decision comes nearly two years into Israel’s war with Hamas, as the government debates the next phase of its campaign. Recent reports in Israeli media suggest that Prime Minister Benjamin Netanyahu may be leaning toward taking full control of Gaza, despite opposition from the Israeli military’s chief of staff. Some government officials have publicly endorsed the idea, while the political opposition has voiced strong criticism.

Critics of the plan, including members of the left, center, and some on the right, argue that Israel should instead prioritize securing a cease-fire to free remaining hostages and address the deepening humanitarian crisis. They also warn of the country’s growing international isolation. Netanyahu has not publicly addressed the debate, and his spokesperson declined to comment.

Security analysts say a full military conquest of Gaza would not be difficult. Israel already controls about 75% of the territory, and Hamas no longer has a unified military structure. However, the challenge lies in what follows.

A full occupation would make Israel responsible for governing roughly 2 million Palestinians in a region heavily damaged by war. This includes providing food, healthcare, education, sanitation, and security. Maintaining control would require a continuous military presence in a hostile environment.

According to Prof. Klor, the estimated annual cost of such an occupation—covering soldiers and civilian services—would account for about 2% of Israel’s GDP and is not currently factored into the national budget. This estimate does not include the cost of reconstructing Gaza’s infrastructure, which Israel might have to shoulder if donor nations refuse to cooperate.

Public opinion remains divided. A recent poll by the Institute for National Security Studies in Tel Aviv found that 27% of Israelis support establishing a military government in Gaza, while 50% favour a technocratic administration proposed by Egypt. Only 12% support the Palestinian Authority taking control—an option Israel’s leadership has categorically rejected.

Supporters of a full takeover argue that, while costly in the short term, it would bring long-term stability. They claim it would eliminate the threat of Hamas rebuilding and allow Israel to implement deradicalisation programs through control of the education system—a point frequently emphasised by Netanyahu and his ministers.

Amir Avivi, a former Israeli defence official aligned with the current government, said a key component of a successful occupation would be a relocation program for Gazans willing to move to third countries—an idea first raised by former US President Donald Trump.

Israeli officials insist any relocation would be voluntary. However, critics argue that the scale of destruction in Gaza could pressure residents into leaving involuntarily, amounting to coercive displacement.

“If most of them will relocate, then it is a game changer,” Avivi said.

By Tamilla Hasanova