Jerusalem, Sept. 15 -- Israeli Prime Minister Benjamin Netanyahu on Monday acknowledged that the country is indeed sliding into partial economic isolation, warning that mounting diplomatic pressure could soon force it to adopt an economy with "autarkic features" resembling a "super-Sparta."Speaking at the Accountant General's Conference in Jerusalem, Netanyahu said Israel was entering a "new and challenging diplomatic reality" shaped by international restrictions on trade and weapons imports.

He accused Qatar of driving the initiative, with the country using its strong media power to construct a "political and economic blockade" against Israel, and warned that Jerusalem would have to rely more heavily on its own capabilities.

"The digital...