DAY 235 OF THE WAR: IDF Releases Preliminary Findings on Rafah Bombing, Yair Golan New Head of Labor Party, Fighting Continues in Gaza

Tel Aviv Diary, May 28, 2024

The IDF released its preliminary findings on the bombing in Rafah. According to the IDF, they targeted two specific Hamas terrorists, using a very small missile, at a location that was not near any tents. The IDF investigation suggests that the missile strike may have hit a nearby ammunition cache, causing it to explode and scatter embers into the sky, which then ignited the fire in the tents. Unfortunately, the truth will not likely alter any perceptions. Few will question why Hamas had weapons stored near the refugees. The lasting images for much of the world will be those of the dead children and the blame attributed to Israel.

A NEW PROOF OF LIFE VIDEO

Islamic Jihad has released a short video featuring hostage Alexander (Sasha) Trufanov (27), which was the first sign of life seen from him since very early in the war. In the clip, Trufanov hinted that more information would be forthcoming. Meanwhile, Israel is awaiting a response from Hamas regarding the resumption of negotiations.

GAZA

There have been conflicting reports about whether or not IDF troops have entered the center of Rafah. However, they have yet to secure approximately 75% of the border area between Gaza and Egypt. Although the exact number of tunnels discovered so far has not been disclosed—it exceeds 10—and the IDF is actively working to destroy them all. One of the likely reasons the Egyptians opposed our entry into Rafah is the embarrassment of the existence of these terror tunnels. However, given that smuggling across this border has been ongoing for over a century, the existence of these tunnels should not come as a surprise.

The Army Spokesman described the combat in Gaza today as follows:

As part of Division 98's operations in the northern Gaza Strip, the Paratroopers Brigade Combat Teams 460 and 7 eliminated terrorists and discovered weapons in the area. Over the past day, the fighters destroyed dozens of terror infrastructures in the Jabaliya area, including underground shafts, observation posts, a weapons depot, and a military building from which Hamas conducted operations.

In one of the operations, the division's forces directed Air Force fighter jets that closed the circle and eliminated a squad of terrorists who were launching mortars at the forces operating in the area.

The brigade combat teams of Division 162, joined by a Bislah combat team, continue operations in the Rafah area. Combat teams from Brigades 401 and Nahal operated overnight on the Philadelphia Corridor against terror targets and infrastructures, working accurately and based on intelligence indicating the presence of terror targets in the area.

The activity is conducted with efforts to avoid harm to non-combatants. The forces engage in battles with terrorists, discovering underground shafts in the area, along with weapons and other terror infrastructures.

Division 99 forces, led by the combat team of Brigade 679, are expanding their operations in the central Gaza Strip. Over the past day, the forces identified terrorists staying in a nearby building. Shortly after, a fighter jet attacked the building and eliminated the terrorists. Meanwhile, the forces continue to focus raids on terror targets in the area. In one completed raid, the forces discovered a weapons depot.

Beyond the Battlefield: Today's Top Stories in Israel

Four stories dominated the news in Israel today — and none of them related to the war.

The first story carried over from yesterday when Minister of National Security Ben-Gvir announced his intention to dismiss Police Chief Shabtai. Today, the Attorney General informed Ben-Gvir that such a dismissal would be illegal.

The second story broke when the UK Guardian reported that former Mossad Chief Yossi Cohen allegedly led a campaign of “threats and intimidation” aimed at dissuading then-ICC Chief Prosecutor Fatou Bensouda from initiating a war crimes investigation into Israel. This effort was part of a broader, ultimately failed campaign. Furthermore, the report alleges that the Mossad and other segments of the Israeli intelligence community have continued to monitor the ICC, including intercepting its communications. I am inclined to believe the story, if only because Israeli journalists indicated they had heard similar accounts from their sources.

The third story concerns the arrest of Tel Aviv District Court President Eitan Orenstein and former Israel Bar Association Chairman Efi Nave on corruption charges. The two are accused of engaging in a quid pro quo, where Nave helped Orenstein secure his position in exchange for assistance in some of Nave's cases. Former Justice Minister Ayelet Shaked is also expected to be interrogated in connection with this case in the coming days.

The fourth story involves the decision to investigate whether Hamas terrorists are being held under conditions that comply with international law. This inquiry follows Israel’s admission that two terrorists died en route to prison, seemingly as a result of beatings they sustained.

New Policy REGARDING Female Soldiers Guarding Detainees

After a hearing by the Knesset Defense and Foreign Affairs Committee on the issue of women soldiers being forced to guard Hamas terrorists, it was announced today that only those women soldiers who volunteer to serve in this position will be required to do so. The Committee has requested that the Army develop medium-term strategies to address the challenge of finding sufficient guards.

YAIR GOLAN ELECTED LABOR PARTY HEAD BY A LANDSLIDE

Tonight, former IDF deputy-chief Yair Golan was elected as the new head of the Labor Party. Golan has pledged to merge the Labor Party with the Meretz Party immediately and to invite members of the protest movement to join the newly formed, yet-to-be-named joint party. Golan, who rose to Deputy Chief of Staff during his notable military career, was a frontrunner for Chief of Staff until a speech he gave on Holocaust Memorial Day, in which he warned of emerging signs of fascism in our country. Several of my friends who worked with Golan in the IDF speak highly of him. Golan came to national attention on the first day of the war when he jumped in his car early in the morning of October 7th and drove to the Gaza border area, where he located and rescued several lives. I have met Golan several times and have been impressed.

MK Naama Lazini and Yair Golan

FIRST WOMAN TO COMMAND AN AIR FORCE BASE

Today (Tuesday), in an emotional ceremony led by Air Force Commander Maj. Gen. Tomer Bar, along with family members and friends, Col. G, took command of Ovda Air Base. Col. Y, who held the position for the past two years, handed over the reins. “G” is the first woman to be appointed as a commander of an operational flight squadron and is now also the first woman to be appointed as a base commander in the Air Force.

Col G, Major General Tomer Bar, Col Y

BUSINESS

Here are Elbit’s first quarter results and a statement on how the war has impacted the company. In the first quarter of 2024, Non-GAAP gross profit was $383.4 million (24.7% of revenues), up from $369.0 million (26.5%) in Q1 2023. GAAP gross profit increased to $374.1 million (24.1%) from $361.5 million (25.9%). R&D expenses decreased to $98.5 million (6.3%) from $110.3 million (7.9%). Non-GAAP operating income rose to $121.6 million (7.8%) from $108.5 million (7.8%). GAAP net income rose to $73.7 million (4.7%) from $62.1 million (4.5%). The order backlog was $20.4 billion as of March 31, 2024.

Since the commencement of hostilities, Elbit Systems has experienced a material increase in demand for our products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels before the war. We have also increased our support to the IMOD, mainly through deliveries of our systems and the dedicated efforts of our employees. At the same time, the Company continues its activities in the international market, including through its local subsidiaries. Subject to further developments, which are difficult to predict, the IMOD’s increased demand for the Company’s products and solutions may continue and could generate material additional orders for the Company.

While the vast majority of our facilities in Israel continue to operate uninterrupted, some of our operations have experienced disruptions due to supply chain and operational constraints, the relocation of certain production lines, evacuation of employees, and mobilization of our employees for reserve duty. Since March 2024, the number of employees mobilized has decreased to approximately 6% as of May 19, 2024, and could fluctuate depending on future developments.

Elbit Systems has taken a number of steps to protect the safety and security of our employees, support our increased production, mitigate potential supply chain disruptions, and maintain business continuity, among them relocation of production lines from facilities in areas of the country that have been evacuated to other facilities; recruitment of additional employees; increased monitoring of our global supply chain to identify delays, shortages, and bottlenecks; rescheduled deliveries to certain of our customers as necessary; and increased inventories.

Bank Leumi

Bank Leumi finished the first quarter of 2024 with a profit of approximately 2.8 billion shekels and a return on equity of 20.2%. Bank Leumi (+1.99% 3023) will distribute 40% of the net profit for the quarter – a total of 1.1 billion shekels – with 835 million shekels to be distributed as a cash dividend and 280 million shekels in a share buyback as part of an annual share buyback program totaling one billion shekels. Bank Leumi's good results are also due to a one-time profit of approximately 632 million shekels from the sale of the headquarters buildings in Tel Aviv as part of the completion of the bank's management relocation to the new campus in Lod.

NewMoo Ltd.

Food-tech start-up NewMoo, Ltd. makes its debut in the “happy cow” space by using plant molecular farming (PMF) to produce casein proteins for cheese-making. Caseins comprise about 80% of the proteins in dairy milk. The resulting product allows cheesemakers to deliver the same genuine cheese experience as traditional dairy cheese via a cost-effective, animal-free, and sustainable pathway.

Creating dairy, without the cow—The scientists at NewMoo discovered a way to express casein proteins in plant seeds that can grow abundantly through traditional field agriculture. After three years of stealth, NewMoo unveils proteins that match dairy proteins in nutrition, composition, and function. NewMoo allows for a highly efficient, cost-effective process that sets the cow free from the industrial milk production process and sequesters carbon during natural cultivation. This makes for a more sustainable source of milk proteins.

The company raised USD7 million in seed funding led by Lool and Zora ventures.

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A PIECE OF HISTORY

Into Syria

As of October 10, 1973, the IDF had successfully recaptured the Golan Heights. Faced with determining their next course of action, the Army and the political echelon considered two main options. One option was to stop at the so-called purple line, which offered defensible positions, and deploy 200 tanks to fight in the Sinai. The alternative option was to capitalize on their momentum to seize Syrian territory on the road to Damascus, an area thought to be largely open. It was a strategic decision that fell to the cabinet. The prevailing view in the cabinet was that if events did not change in Sinai, Egypt would retain control of some territories. Furthermore, the Army stated that relocating the tanks to Sinai would require at least four days. Ultimately, Golda Meir decided that they should press into Syria as soon as possible, ensuring that if the war were to end suddenly, Israel would still control some Arab territory.

The attack began the next day, on October 11th. At 11 AM, two columns were deployed: the first, under the command of Rafael (“Raful”) Eitan, attacked from the north, while the second, commanded by Dan Laner, would try to advance directly up the Kunitra-Damascus road. Although the direct assault on the Damascus road encountered challenges, the northern force made significant progress. As they approached the Knaker, the last fortification before the outskirts of Damascus, they unexpectedly encountered a large contingent of Iraqi tanks. The Israeli forces engaged the Iraqis, which proved to be inferior in combat, allowing the Israeli tanks to destroy dozens of Iraqi tanks without suffering any losses. However, the situation changed with the arrival of fresh Iraqi forces, totaling 500 tanks, 700 APCs, and 30,000 troops. With Israeli troops 20 miles from Damascus and after Israeli artillery fired some rounds at Mazeh airport outside Damascus, the Soviets threatened to intervene. This led to the decision to halt further advances on the Syrian front and focus on the Sinai.