Despite the so-called `ceasefire’ in Gaza, Israel continues to kill Palestinians with impunity. It also refuses to allow sufficient food, medical supplies, and other essentials to enter Gaza. As of now, the number of Palestinians killed by the Israeli military in Gaza since October 2023 has surpassed 70,000, with 70 per cent being women and children. Additionally, Israel commits atrocities in the West Bank, killing Palestinians, demolishing homes and seizing land.
In recent weeks, Israel and the United States (US) have been attacking Iran. As of 20 March, nearly 1,500 Iranians have been killed. The attack is illegal under international law and is carried out without the approval of the UN Security Council.
Both Trump and Netanyahu could face arrest by the International Criminal Court (ICC) for these belligerent actions. In fact, the ICC has already issued an arrest warrant for Netanyahu for crimes committed in Gaza. Instead of prosecution, the US has imposed sanctions on the ICC prosecutor and judges who issued the warrant for Netanyahu.
Meanwhile, Israel has been bombing Lebanon almost daily, killing more than one thousand people as of late March. It has also ordered civilians in South Lebanon to move immediately north of the Zahrani river, about 40 km from the border, displacing over one million people.
Costly campaigns and US financial support
The Israel-US military campaigns are very costly. As of March 2026, the estimated total expense of Israel’s multi-front military operations (Gaza, West Bank, Lebanon, and strikes in Syria/Iran) since Oct 7, 2023, has surpassed $110 billion (approximately 352 billion shekels). This amount includes direct military spending, civilian compensation, interest on debt and domestic economic support.
Israel's military campaigns have received substantial support from the United States, which has supplied over $21 billion in military aid since October 2023. Additionally, the US has spent between $9.65 billion and $12.07 billion on its own military operations in the region- including Yemen, the Red Sea, and Iran- to back Israel, bringing the total US expenditure on the conflict to over $31 billion. In the coming weeks, President Trump intends to request Congress to allocate up to $200 billion to continue its military actions against Iran.
Changing Public Support in the US The US's financial and military backing for Israel is unlikely to continue indefinitely. This is because most ordinary Americans are now more sympathetic to the Palestinians' plight. According to the most recent polling data from February and March 2026, the American public is currently either evenly divided or slightly more sympathetic towards Palestinians than Israelis. This represents a historic shift, as it is the first time in over twenty years of polling that Israel has not maintained a clear lead in US public opinion.
The key findings from major polls, such as Gallup, confirm this shift. The Gallup Poll (Feb 2-16, 2026) showed that 41 per cent of Americans, especially among Democrats, sympathise more with the Palestinians, compared to 36 per cent who sympathise more with the Israelis. This marks a dramatic reversal from just a year prior, when Israelis led by a 46 per cent to 33 per cent margin.
The trend is more evident among younger Americans, where 53 per cent of those aged 18-34 now sympathise more with Palestinians, whereas only 23 per cent sympathise more with Israelis.
Based on recent polling data from early 2026, the American public is becoming increasingly sceptical about providing military aid to Israel, with a clear trend showing more support for reducing assistance rather than increasing it. This change in opinion on aid reflects the historic shift in sympathy towards Palestinians discussed earlier. A poll by The Economist found that 42 per cent of Americans now favour decreasing military aid to Israel compared to only 13 per cent who hold the opposite view.
Low US public support for attack on Iran
Regarding Trump’s decision to attack Iran, based on multiple national polls conducted in March 2026, the American public is generally sceptical of President Trump's choice to attack Iran. A consistent majority opposes the military action, although the strength of that opposition varies depending on how the question is phrased. Support for the strikes is primarily limited to the President's Republican base.
For example, a CNN study found that 59 per cent of Americans oppose military action, compared with 41 per cent who support it. A key reason for this opposition is that most Americans do not believe Iran poses an imminent military threat to the US.
In other words, Trump has so far failed to convince the majority of Americans, especially independents, that the war in Iran is necessary or will ultimately improve US security.
US debt burden
One of the main reasons more Americans are opposed to the US attack on Iran is the realisation that they are all financed by borrowed money, which taxpayers will have to repay in the future. Military operations are extremely costly, and the conflict with Iran is no exception. These are unplanned, emergency expenses that require immediate financing. An estimate suggested that the first two weeks of the campaign against Iran, which started on Feb 28, cost over $120 billion. If the conflict lasts two months, costs could climb to around $650 billion, increasing the deficit by 3.6 per cent.
Apart from the war costs, the US has longstanding financial commitments to Israel. The latest 2026 budget allocates over $4 billion in security-related support for Israel. While the US government does not have a specific "war and aid to Israel" borrowing line item, these expenses add to the nation's growing debt. The link is clear: the US government is funding these initiatives through borrowing because current revenue (taxes) is not enough to cover total outlays, which now include substantial new war costs as well as committed aid.
The combination of regular government expenditure, new war costs and foreign aid committed to Israel is a major factor in the rapidly rising US national debt, which has now hit a historic milestone. On 18 March 2026, the US national debt officially exceeded $39 trillion for the first time. This marks an increase of $1 trillion in just the past five months, a rate that alarms fiscal experts. It is on course to reach a staggering $40 trillion before the end of this year.
Economic consequences on the American public
This rapid borrowing has tangible consequences for the American public because, as the government borrows more, it can push up interest rates across the economy. This results in higher costs for mortgages, car loans, and credit cards for American families. Government borrowing can "crowd out" private investment. When the government takes a larger share of available capital, businesses have less money to invest in expansion and hiring, which can cause slower wage growth. Businesses may resort to debt, but this will increase their financial burden, leading to slower wage and salary growth. Overall economic pressure from high debt can contribute to higher prices for goods and services and, inevitably, a higher cost of living.
This debt persists. The accumulated borrowing creates a substantial fiscal burden that future generations of Americans will inherit. With interest rates staying high, the US is expected to spend over $1 trillion on interest payments alone in 2026 — money that could have been allocated to domestic programmes.
Hence, the growing discontent among the American public regarding the substantial financial aid being provided to Israel. The American public is questioning why their own needs are not being prioritised over the military needs of Israel.
The US household and corporate sectors are also mired in debt
What worsens the situation for the US is that debt levels are also very high in both the household and private sectors. In the household sector, debt reached a new high of $18.8 trillion at the end of 2025, mainly driven by mortgage balances, which amounted to $13.17 trillion.
In the corporate sector, between 2025 and 2026, US companies faced a staggering $2.3 trillion in maturing debt, with approximately $1.8 trillion of that maturing within the two-year window.
Looking ahead, the US corporate debt market, especially for lower-rated, speculative-grade companies, is very precarious because these companies face very high refinancing costs.
The adverse economic consequences of the Iran war
The current war with Iran has significantly altered the economic landscape, creating a complex and challenging environment for U.S. interest rates and corporate debt. The central dynamic is a conflict between the threat of higher inflation from surging energy prices and the risk of an economic slowdown, putting the Federal Reserve and corporate borrowers in a difficult position.
The most direct effect of the war has been to cast doubt on the Federal Reserve's path to cutting interest rates.
At its March 2026 meeting, the Federal Reserve voted to keep its key interest rate steady within a range of 3.5 per cent to 3.75 per cent. This decision was widely anticipated as policymakers grappled with the uncertainty unleashed by the conflict.
Before the war, markets had fully expected several interest rate cuts in 2026. Now, those expectations have diminished. While the Fed's official "dot plot" still indicates that most officials anticipate one cut this year, market pricing shows deep uncertainty, with some traders betting there may be no cuts at all.
The war has created a "double bind" for the Fed. An oil price shock is inflationary, which usually calls for higher interest rates to cool the economy. However, the shock also acts as a tax on consumers and businesses, which can slow down economic growth, an argument for lower rates. As Fed Chair Jerome Powell stated, the situation is highly uncertain, and the central bank is in a "wait and see" mode.
What is certain, though, is that companies, especially those with lower credit ratings, now face even higher borrowing costs on top of the already elevated interest rate environment. The availability of credit is also tightening; a trend now being called a "private credit crisis". Finally, one sector that is highly vulnerable is commercial real estate. The war is pushing long-term interest rates higher (the 10-year Treasury could potentially rise towards six per cent under sustained pressure), which directly lowers property values and makes refinancing more expensive and difficult.
Conclusion
The ongoing genocide in Palestine and the current US-Israel unprovoked and illegal attack on Iran have resulted in the deaths of over 70,000 Palestinians and more than 1500 Iranians. However, they are also extremely costly financially for both Israel and the US.
The US public is now more aware of the vast amount of money spent on supporting Israel in committing crimes of genocide in Gaza. They also feel deeply appalled that their hard-earned money is being used to kill tens of thousands of innocent civilians, including women and children.
The conflict with Iran, which many parts of the American public believe is influenced by pressure from the Israeli lobby, is also placing significant strain on the US economy. Along with the inevitable rise in the cost of living, debt levels across all sectors are increasing. The substantial debt will eventually force the US government to cease its support for Israel and will also end its war on Iran.
Unfortunately, the situation is unlikely to improve overnight. Therefore, the US will probably persist in supporting Israel with funds borrowed from various sources, all stemming from loans created by the US banking industry. Since dismantling this system quickly is impossible, the ongoing atrocities will continue, worsening the already heavy debt burden of the US federal government. As a result, not only innocent Palestinians and Iranians, but also US citizens—particularly the vulnerable and poor—will suffer greatly from the Zionist settler-colonial project in West Asia.
Emeritus Professor Mohd Nazari Ismail is the director of Hashim Sani Centre for Palestine Studies at Business and Economics Faculty of Universiti Malaya.
The opinions expressed in this article belong solely to the authors and do not necessarily represent the views of Sinar Daily.