Netanyahu is facing mounting criticism from economists, political rivals and Israel’s central bank after proposing cryptocurrency as a possible means of circumventing international sanctions, as growing diplomatic pressure over the Israeli regime’s policies threatens its economic ties with traditional allies.

In an interview with Israel’s Channel 10 on Friday, Netanyahu said he was preparing for a scenario in which broader sanctions were imposed on Israel, raising concerns about the economic consequences of its increasingly strained international relations.

Last month, Britain, France and Canada announced plans to block imports from Israeli settlements in the occupied West Bank, marking another step…