Netanyahu seeks IDF budget boost; Lapid demands end to haredi funds

Israeli Prime Minister Benjamin Netanyahu is seeking to increase the Israel Defense Forces (IDF) budget amid ongoing military operations in Gaza. Opposition leader Yair Lapid has stated that his support for the budget increase is contingent upon the cancellation of funds perceived as enabling haredi draft evasion. The dispute highlights tensions between military readiness and domestic political priorities in Israel. Meanwhile, the ongoing conflict with Hamas persists despite a U.S.-backed ceasefire agreed upon in October 2025. These developments may impact broader geopolitical dynamics, including Israel’s strategic objectives in the region. Key Takeaways Netanyahu’s initiative to raise the IDF budget appears consistent with scenarios emphasizing military readiness over withdrawal, impacting market perceptions of Israel’s strategic intentions. Lapid’s conditional support to cancel haredi funds suggests domestic political complexities that could influence government decision-making on defense spending. Market pricing suggests skepticism about the likelihood of an Israeli withdrawal from Lebanon by the end of 2026, as military focus shifts to sustained operations in Gaza. What to Watc...