The office of Israeli Prime Minister Benjamin Netanyahu adopted a defensive posture Tuesday after US credit agency Fitch downgraded the country’s credit rating amid heightened tensions in the region, including the war in Gaza and a potential confrontation with Iran.

Netanyahu's statement came after Fitch cut Israel’s credit rating late Monday to A from A+, citing the conflict in Gaza, “which could last well into 2025.” The ratings agency added that there are risks the conflict could broaden to other fronts as fear of a war with Iran and Hezbollah in Lebanon looms. The Israeli military is preparing for an attack on multiple fronts from Iran and its proxies following the twin assassinations of the political leader of Hamas in Iran and a senior Hezbollah commander in Beirut late last month.

Responding to the downgrade, a statement from Prime Minister Benjamin Netanyahu's office read, “The Israeli economy is strong and functions well. The downgrading is a consequence of Israel's dealing with a multi-arena war that was forced upon it. It will go up again when we win — and we will win.”

Israel’s deficit continues to widen as growing military spending squeezes the economy and reservists spend long periods away from their day jobs amid the war in Gaza against Hamas, now in its 11th month.