DAY 160 OF THE GAZA WAR: Israel Receives Hamas Response, Demonstrations in Tel Aviv, Nasrallah Speaks

Tel Aviv Diary March 14, 2024

MORE DEMONSTRATIONS

Tel Aviv witnessed another night of demonstrations. The first gathering was led by relatives of the hostages, who marched and closed the Ayalon Highway. Tonight, it was reported that Hamas has finally responded to the ceasefire/hostage proposal. The reports were unclear about whether or not the response was positive. Netanyahu’s office stated that Hamas’s demands were unrealistic. An emergency War Cabinet meeting is scheduled for tomorrow to discuss the response.

The second demonstration was sponsored by “Achim LaNeshek” (Brothers in Arms) focused on the demand for everyone to serve, particularly targeting the ultra-Orthodox community. The government had planned to pass a law that would permanently exempt all Yeshiva students from military service. However, after October 7th, any widespread exemption from service became a clear non-starter.

A majority of the public supports conscription of the ultra-Orthodox, even if enforcement is required. Given our losses these past months, the argument that Yeshiva students in Bnei Brak make an equivalent contribution to national defense by sitting and studying does not sit well with many — especially as there have been no military funerals in Bnei Brak. Despite the ultra-Orthodox community’s resistance to change, this legislation is urgent. The previous military service exemption has run out. If a law is not passed in the next two weeks, all Yeshiva students will lose their funding. The fear among those thousands who came out to demonstrate is that the current government, led by Netanyahu, would craft a law that sounds like progress but, in fact, would fail to draft any additional ultra-Orthodox conscripts.

TERROR ATTACK IN THE NEGEV

A terror attack occurred today at the Beit Kama junction, located north of Beersheva. An Israeli Arab, who arrived by scooter from Rahat, entered a coffee shop at the intersection and stabbed Chief Warrant Officer Uri Moyal, 51.

Despite being taken by surprise, the stabbed individual managed to turn around and kill the terrorist. He later died in the hospital. While describing the attacker as an Arab Israeli is technically accurate, it doesn’t capture the full context. The 22-year-old terrorist lived in Gaza until age 17, and his father still resides there. He moved to Israel based on the family reunification law; as his mother lives in Israel’s southern Bedouin town of Rahat. In complete contrast, the terrorist’s cousin is revered as an Israeli hero, who insisted on voluntarily serving in the IDF reserves and who fell fighting in Gaza.

IN THE NORTH

Today’s fighting on the Northern front was comparatively routine. Hezbollah fired on several locations along the border, prompting the IAF to return fire on several Hezbollah targets. While earlier in the week, the conflict seemed to be spiraling out of control, today’s events suggest that matters are more contained and under control.

Yesterday, Hezbollah’s leader, Hassan Nasrallah, delivered a speech in honor of Ramadan. Nasrallah’s address bore greater resemblance to commentary from a political analyst. Here are several core excerpts from Nasrallah’s statement:

Even if you go to Rafah, you will lose the war. After six months, you failed to produce any victory image. All the goals you set for yourself, you failed in them. Many in Israel argued with him [Netanyahu_MS] and told him that eliminating Hamas is not a realistic goal. Even Europeans and Americans are saying this now.

Today, all Palestinian factions want a cessation of the war, not just a temporary truce. We announce from the aid front in Lebanon that we stand by them [Palestinians_MS] and by Hamas, which is negotiating on their behalf. We are with you and your just demands (i.e., ending the war, Israeli withdrawal, and the return of the displaced to northern Gaza).

With a stroke of a pen, Biden could succeed in stopping arms exports to Israel, then there would be no weapons against Gaza or against Lebanon. With a stroke of a pen, he could choose not to veto in the Security Council. They threw in some food, but that won't convince any of the Arab, Muslim, and free people around the world that Biden can't stop the war. On the Lebanese front, especially in recent weeks, the tension of the enemy and the settlers' anger has risen, their screams are loud today — especially in recent weeks, due to the continuation and escalation of our activities. This front fulfills its role in pressuring the enemy — economically, militarily, and in all its roles. I wish those people would listen to the Israeli officials, who talk about what's happening on the northern front.

Nasrallah then claimed that Israel is concealing its losses in the north, and quoted the Defense Minister Galant and IDF Chief of Staff Halevi, who stated, “our soldiers are fighting on the Gaza front and the northern front and paying prices.”

He also discussed the IDF’s critical shortage of soldiers, highlighting Israel’s desire to draft the Haredim. Nasrallah spoke approvingly of Chief Sephardi Rabbi Yosef’s statement that Haredim would leave the country if drafted, commenting favorably on this prospect. He described Yosef’s words as good news and indicative of Israel’s future, emphasizing, ”the Haredim represent a significant segment of Israel’s population.”

Nasrallah continued:

Victory belongs to those who are patient, who stand firm. The matter requires more time, Israeli society has already begun to tire. The military is tired, society is tired, the economy is tired. More patience will force the enemy to stop the aggression, to be defeated and to acknowledge his failure.

The axis of resistance, the resistance factions, are in a position of strength, the enemy is in a position of weakness. Even the Americans, many of those protesting in America (and they should be thanked) are influencing the American government. President Biden is only afraid of losing in the elections, and that the pressure on him will lead to the war's end.

In summary, Nasrallah’s address was not the speech of someone about to launch a war.

CHUCK SHUMER

Today, Senate Majority Leader Chuck Schumer stated in a speech relating to Prime Minister Netanyahu:

I believe in his heart, his highest priority is the security of Israel, (said Mr. Schumer, the highest-ranking Jewish elected official in the United States.)

However, I also believe Prime Minister Netanyahu has lost his way by allowing his political survival to take precedence over the best interests of Israel. He has been too willing to tolerate the civilian toll in Gaza, which is pushing support for Israel worldwide to historic lows. Israel cannot survive if it becomes a pariah.

Schumer continued:

I believe that holding a new election once the war starts to wind down would give Israelis an opportunity to express their vision for the postwar future.

While most Israelis agree that elections should be held promptly, after the war ends, Schumer’s unprecedented remarks are likely to bolster Netanyahu, who can now assert that he alone is capable of standing up to the Americans. Furthermore, no one likes to be told how to manage their own political system by a foreign entity.

POLL

Last night I referenced an election poll by Channel 13 but did not post it. Here it is:

ECONOMY

Momentum in the housing market is on the rise. According to data from the Central Bureau of Statistics, January, saw the sale of 7,887 apartments, marking a record high since July 2022. This represents an increase of 33% from December, and an 18% rise compared to January of the previous year.

Despite ongoing high Interest rates, and the backdrop of war, apartment sales are steadily rebounding since October 2023. Real Estate developers have played a key role in this resurgence, by offering apartments through sales campaigns, with either implicit or explicit discounts. Notable incentives include the requirement for a low initial down payment, approximately 5% of the apartment’s price, along with mortgage subsidies.

In January, contractors sold 3,751 apartments, marking a 33.5% rise from December, and an impressive 44% surge from January 2023. Sales by contractors in January reached a peak not seen since May 2022. This uptick was further bolstered by a substantial increase in the purchase of subsidized apartments for those eligible under the Ministry of Housing, with 989 apartments sold in January. This figure stands in stark contrast to the 561 apartments sold in December, and the 572 apartments sold in January last year.

BUSINESS

The Israeli company Wiz is set to acquire the Israeli startup Gem Security for $350 million, in a transaction first reported by Bloomberg, and anticipated to be an all-cash deal. This deal is one of the largest acquisitions in which one Israeli startup is purchasing another, following the massive acquisition of Claroty by Medigate for $400 million in 2021.

According to PitchBook, Gem Security raised $34 million since its establishment in 2022. Gem Security was founded by CEO Aryeh Zilbershtein, CTO Ron Konigsberg, and CPO Ofir Brokner, who all met during their service in Unit 8200. Zilbershtein and Brokner previously worked together at Signia, which was acquired by Temasek, while Konigsberg served as the Chief Architect at Singular. Gem Security was launched in the Team8 company incubator.

The American cybersecurity giant Zscaler is set to acquire the Israeli company Avalor, which developed technology for classifying, identifying, and analyzing information from various sources, for approximately $350 million. This is Zscaler's third acquisition in Israel, after purchasing Trustdome in 2021 and Canonic last year. Before this acquisition, Zscaler employed about 100 workers in Israel. Negotiations for the purchase were first revealed in Calcalist in January.

Avalor was founded in 2022 by Ranen Raz, the CEO of the company, and Kfir Tishby, who serves as the CTO. So far, the company has raised $30 million from Salesforce Ventures, Cyberstarts, TCV, Jibe Ventures, and Datormah founders Efi Cohen and Ran Shrig, which was sold to Salesforce. The company's investors, especially Cyberstarts, are expected to see a return of more than ten times their investment in the company.

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A PIECE OF HISTORY

After refusing to accept the recommendations of the Anglo-American committee, the British were convinced by the Jewish underground that the status quo, of continued illegal immigration and military actions, was unsustainable. Consequently, the British revisited discussions with the Americans, expressing willingness to restructure the mandate to achieve some compromise. President Truman approved the plan, confirming United States participation. A special cabinet-level committee was established under the chairmanship of Dr. Henry F. Grady, who was an Assistant Secretary of State, in June 1946.

The American members of the committee were flown to London on Truman's plane, to engage in comprehensive talks with their British counterparts. On July 31, 1946, they presented their new plan that became known as the Morrison-Grady Plan. It aimed to settle most of the displaced persons (DPs) in Europe, but also would allow 100,000 to immigrate to Palestine under continued British jurisdiction, with the establishment of separate Jewish and Arab provinces, which would have limited self-rule. According to the plan, the Jews were allocated 17% of the country, while the British would maintain control of defense, foreign affairs, and immigration.

The British government accepted the plan, and attempted to initiate negotiations with both Jewish Arabs representatives. However, the Jews of Palestine refused to negotiate based on the plan, and the Arabs of Palestine would not negotiate unless the Mufti was allowed to participate. Unofficial meetings with both Weizmann and Ben Gurion did not go well. President Truman was also not a fan of the proposal.

Truman later wrote,

I studied the proposed plan with care, but I was unable to see anything that could come out of it except more unrest. The plan made the admission of 100,000 conditional and its acceptance by the Arabs, so no relief was offered in that direction either, nor was this the kind of plan that I had hoped would result. It seemed a retreat from the final recommendations made by the Anglo-American Committee of Inquiry earlier in the year. I am therefore compelled to inform Hadley that the government of the United States could not go along.

The British kept trying, however, after meeting again with Zionist leaders, they made no progress. Furthermore, the meeting with Arab leaders was characterized by President Truman as follows:

The Arabs were as uncompromising as the Jews. They made an appearance at the round table talks, which the British convened late in January 1947, but they would not yield an inch, for their position was that Palestine was an Arab country and should be kept Arab.

The talks collapsed on February 14, 1947, at which point, the British gave up trying to reach an agreement and turned the matter over to the UN.