Three years after October 7, prolonged war takes its toll on Israelis

Three years after the October 7, 2023 attacks, the prolonged conflict in Gaza continues to exert a significant and multifaceted toll on Israeli society. The mental health crisis is widespread, with a substantial increase in psychiatric cases and diagnoses of Post-Traumatic Stress Disorder (PTSD) among both the general population and military personnel. A January 2026 report indicated a 30% surge in psychiatric cases since October 2023, while surveys show a high demand for psychological support, especially in communities near the Gaza border. Survivors of the attacks and veterans have experienced severe psychological distress, leading to national discussions about the "invisible costs" of the extended conflict.

Politically, the upcoming October 27, 2026 elections are heavily influenced by the aftermath of October 7 and the ongoing wars, serving as a referendum on Prime Minister Benjamin Netanyahu's leadership and accountability. While the events have cemented existing political blocs, there is widespread public distrust in the government and calls for a state commission of inquiry into the attacks. Internal issues, such as exemptions for ultra-Orthodox men from military conscription, have also become central to the political discourse.

Economically, Israel has demonstrated resilience, with its GDP predicted to grow by 4% in 2026, largely driven by a booming tech sector, particularly defense startups. However, this growth comes despite the substantial cost of the war, which has strained public finances and resulted in an estimated loss of 177 billion shekels in economic output by the end of 2025. The conflict has also led to continued displacement for some communities and has intertwined economic hardship with mental health challenges for many Israelis.