An all-out war with Hezbollah poses a major challenge to "Israel," Israeli reserve colonel Kobi Miron said Sunday.

The damage to the Israeli "home front", as he put it, would be significant in case of a war, not to mention the severe material and human casualties.

Miron, in an article published on Israeli Channel 12's website, stated that there is currently an "intense attrition war at a high pace" on the northern front, with many incidents occurring every day, including the firing of anti-tank missiles, rocket launches, infiltration operations, and launching of kamikaze drones used by Hezbollah and Palestinian organizations.

"Hezbollah has made some significant accomplishments in terms of psychological warfare, such as the evacuation of 70,000 settlers from their homes on the northern borders and hundreds of thousands who are still threatened by Hezbollah's missiles all the way to the Gulf of Haifa," Miron underlined.

Politically, the Israeli occupation forces in the north were ordered to respond through calculated and cautious attacks without causing a massive deterioration in terms of the situation in a manner that would allow it to escalate to an all-out war.

Read next: Danger intensifying in the North: Israeli media

"Israel is compelled to retreat and respond against Hezbollah, the party that has the initiative and is continuously escalating," he said, attributing Hezbollah's dominance to the Israeli forces being engaged in a fight in the heart of Gaza. 

Moreover, Miron underlined that the Israeli occupation forces are being cautious because they fear accidentally inflicting damages upon the Radwan Force, which is situated 3-4 kilometers into the Lebanese territories from the border area.

"It is only appropriate for us to ask ourselves, as part of the self-discovery process after October 7, how did we allow for Hezbollah to turn into a dangerous monster through our policy of containment and self-restraint for more than a decade?"

Israeli occupation Knesset Member and former Security Minister Avigdor Lieberman said on Saturday that the Israeli occupation "has lost the war in the north."

"Hezbollah will continue to use the northern front until it sees a change in the Gaza Strip," Channel 13's Arab affairs commentator Hizki Semantov said.

"There is no change in Gaza, and Yahya Sinwar has not been eliminated, and Israel is not stepping up to the task of completely eliminating Hamas," the Israeli journalist said.

"The danger of eliminating Hamas, solving it, and removing it from the axis of Hamas, Iran, Hezbollah, and Syria is not on the agenda," Semantov added.

He also warned that "what is happening on the northern borders and in the towns along the confrontation line and the northern towns is an intolerable situation; no one lives there, and no one wants to return there. This is an achievement for Hezbollah."

Additionally, Israeli Likud Knesset member Tali Gottlieb said, "Hezbollah is not deterred; it mocks us and attacks us whenever it deems appropriate."

The failures of the Israeli occupation are not only on the military front, for it was revealed on Friday that the Israeli security establishment was considering the possibility of reducing the number of reservist soldiers and demobilizing some of them. 

Settlers abandoning their homes

Israeli settlers are leaving their homes in the Gaza envelope and northern occupied Palestine due to their fear of the Resistance on both fronts, with a massive wave of displacement taking place in a way that has destabilized the already unstable economy.

A difficult political discussion in "Israel" has been sparked by the mounting financial cost of the war on Gaza, which will pose challenges to Prime Minister Benjamin Netanyahu and his Finance Minister, Bezalel Smotrich.

The Israeli occupation has been overspending on everything from weapons to paying the hundreds of thousands of reservists it called up. In addition, declining household spending and tourism are contributing to a decline in fiscal income.

A dispute about payments to ultra-orthodox schools and other causes supported by right-wing members of Netanyahu's ruling coalition has arisen as a result of the strain on other budgets like religious schools in the occupation.

The Israeli entity has successfully raised approximately 30 billion shekels ($7.8 billion) in debt since the start of its aggression on Gaza, as reported by the Finance Ministry on Monday.

Out of the total amount, around 16 billion shekels were raised through dollar-denominated debt in international markets, highlighting the Israeli occupation's efforts to seek financial support on a global scale.

In addition to this, the Finance Ministry conducted a weekly bond auction in the local market, resulting in the acquisition of an additional 3.7 billion shekels.

Due to the prolonged aggression on Gaza, "Israel's" economy is predicted to contract by around 1% this year, and the country's debt to GDP ratio is predicted to surpass 65%, central bank governor Amir Yaron stated on Thursday.