Updated

Israel's multiple ongoing conflicts have driven a rift between the finance and defense ministries over spiraling military spending ahead of upcoming budget decisions. The dispute reflects the mounting fiscal burden of sustained operations in Gaza, Lebanon, and Syria. Separately, the Bank of Israel cut interest rates to a four-year low of 3.25% to bolster a partial postwar economic rebound, warning the recovery remains incomplete. Manufacturers accused central bank Governor Yaron of acting too slowly, arguing a strong shekel continues to hurt exporters' profits.