Soaring war costs: Israel's mass reserve call-up deepens hostage crisis, sparks economic concerns

Report by Amal Shehadeh, English adaptation by Yasmine Jaroudi

Israel's approval of the enlistment of 450,000 reservists for a three-month deployment to achieve its objectives in the Al-Aqsa Flood war has heightened tensions, particularly among families of Israeli hostages held by Hamas. 
 
The move has prompted many of them to bypass the Israeli government and directly engage with U.S. envoys Steve Witkoff and Adam Boehler, both of whom have reiterated that progress in negotiations is still possible in the coming days.

Prime Minister Benjamin Netanyahu initially suggested a deal to secure the release of hostages would be completed within two days, only to walk back later in his statement, blaming Hamas for rejecting the proposal presented by Witkoff. 

However, sources familiar with the negotiations have indicated that the main obstacle remains Hamas' demand for guarantees to end the war—something Israel has yet to commit to.

As the stalemate continues, the fate of 59 hostages, including 20 confirmed to be alive in Gaza, remains uncertain. Their families and numerous activists have intensified calls for an immediate halt to the war, citing both humanitarian concerns and the enormous financial burden of the ongoing military campaign.

According to reports, the cost of the "Gideon Chariots" operation has reached approximately $5 billion. The new mass reserve mobilization is expected to add over $9 billion in expenses, raising alarm about the war's impact on Israel's already strained economy. 

Critics have accused the Netanyahu government of using massive defense spending as a political tool to maintain its hold on power.

Further straining resources, Israel has decided to reopen a detention facility in the country's north—originally used to hold Lebanese detainees during the last war—in preparation for processing potentially hundreds of new Palestinian prisoners expected to be captured during the expanded military operation.