DAY 303 OF THE WAR: Awaiting the Inevitable, Anger at Netanyahu Grows, Rockets From Gaza, Tunnels Under Egyptian Border

Tel Aviv Diary, August 4, 2024

We continue to wait, and I’ll admit that it’s challenging. How long will this uncertainty last—a day, three days, a week, or even longer? We simply don't know. Yesterday, some rumors circulated that the Iranian and Hezbollah retaliatory attacks would occur on Tisha B’Av; while others speculated their response might take place within the next few days— but of course, the truth remains unknown. In the meantime, this is the one subject dominating everyone’s mind. Every conversation inevitably speculates about when the attack is going to happen. Are we prepared? Will we face disruptions to our electricity and/or internet? No one knows the answer.

Of course, the most pressing concern is whether our defensive systems will prove effective. Even if they are, how many missiles will penetrate our defenses? What insights have the Iranians gained since the last attack in April? And what have we learned? There are countless questions but no definitive answers. There have been no addresses from the Prime Minister or the President to the nation. Perhaps they are at a loss for words, leaving us with nothing but media pundits to discuss these pressing issues.

Tonight, a meeting is scheduled between Netanyahu and the military advisors to discuss how Israel should respond to the anticipated attacks. The discussions will focus on various potential scenarios concerning what the Iranians and Hezbollah might be planning.

In the meantime, frustration and anger at Netanyahu is growing among the families of the hostages. A leaked statement from the most recent discussion between Netanyahu and Biden last Thursday revealed Biden’s exasperation. The President accused Netanyahu of misleading him about the terms of the hostage deal, saying, “Stop bullshitting me about the hostage deal.” Both Biden and the hostage families feel they have been lied to. Netanyahu asserted he had not introduced any new terms, a claim contradicted by my entry last night on the statements made by negotiators at last week's meeting. This evening, it was reported that Netanyahu has now introduced an additional stipulation: He is demanding that all the released terrorists be relocated to other countries, such as Turkey or Qatar, rather than the West Bank or Gaza, adding yet another condition to the negotiations.

President Herzog stated tonight that Israel must act swiftly to secure the release of the hostages. In response, Netanyahu argued that only increased military pressure would compel Hamas to agree to the hostages’ release. It remains unclear how additional military pressure can be applied to Hamas. The only additional pressure Netanyahu could apply would be a plan for the day after that excludes Hamas. However, for nine months, Netanyahu has failed to develop such a plan because the same coalition partners obstructing a hostage deal would also block any effective post-war plan that might work.

Today, Einav Tzangauker, mother of Hamas hostage Matan (former Likud voter and former avid Bibi supporter), said: "Netanyahu is the most negligent, cruel, and deceitful Prime Minister in the history of our country.”

During the last 24 hours, beyond the threats from Iran and Hezbollah, there have been a number of military developments. Just a minute after I published last night’s diary update, Hezbollah launched 50 rockets at Northern Israel. Although most were intercepted, and there were no human casualties, there was damage in Moshav Bet Hillel, where three cows were killed.

TERROR STABBING ATTACK IN HOLON

This morning in Holon, a terrorist attack resulted in two fatalities and two injuries. The victims were either out on a morning stroll or run when they were assaulted by a knife-wielding terrorist from the Palestinian village of Salfit. He had crossed into Israel last Thursday and had been hiding until this morning. This evening, the Army began preparations to demolish his house in the upcoming days.

There is ongoing debate about the Army and government’s handling of illegal laborers. Some argue they turn a blind eye to ensure money flows into the West Bank, providing income for its residents. Others believe the Army lacks the resources to effectively patrol the border fence. My guess, is the answer likely involves a bit of both.

GAN YAVNEH AND KIRYAT SHEMONAH

Around noon today, five rockets were launched towards Gan Yavneh, located west of Ashdod. This marks the furthest such attack from Gaza in months. Four of the rockets were intercepted, and one landed near Kibbutz Hazor. Reports indicate that these rockets originated from the Khan Younis area, which the Army had recently vacated. This afternoon, residents near the launch site in Khan Younis were instructed to evacuate temporarily so Israeli forces could target the missile launchers positioned there. This incident follows additional rocket attacks from Gaza over the weekend.

In the early afternoon, a missile struck a factory in Kiryat Shemonah. Fortunately, no casualties were reported.

GAZA

While Israel has maintained its presence on the Philadelphi Corridor for over two months, it has withheld information about its findings to avoid embarrassing Egypt. After extensive discussions with the Egyptians, it has now been decided to reveal the extent of the tunnel network they discovered, including one tunnel, shown below, that is large enough to accommodate trucks

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The following statement was released by the IDF Spokesman regarding today’s operations in Gaza:

Recently, Division 162 forces and the Yahalom Unit have been working to locate and destroy underground routes in the Philadelphi Corridor. So far, the forces have identified and destroyed dozens of routes.

At the beginning of last week, during one of the operations to locate underground routes in the Philadelphi area, a tunnel three meters high was found on the Philadelphi route.

At this stage, the forces continue to investigate and neutralize the identified underground route as well as other extensive routes that were found.

The IDF will thoroughly destroy all underground infrastructure in the Philadelphi Corridor and will act resolutely to prevent their formation in the future.

It should be noted that despite these IDF reports, most of the tunnels appear to have been sealed from the Egyptian side. This indicates that the Egyptians have been partially effective in curbing underground smuggling—a practice that has persisted for nearly a century. However, the majority of the smuggling has been conducted above ground, primarily through the Rafah crossing.

YAZIDI

See the video below for the harrowing, sad story of an 11-year-old Yazidi girl who was abducted by ISIS and sold as a sex slave. This young girl was found alive in Gaza.

ECONOMY

The average salary in the high-tech sector continues to decline. The average salary in high-tech decreased by 6.8% — from 31,976 shekels in April to 29,804 shekels in May. This represents a 17% drop over two months compared to the all-time high in March, which stood at 35,870 shekels. Nonetheless, this salary figure is still 5.7% higher compared to May 2023 (when the average salary in high-tech was 28,193 shekels). This data comes from the average salary report for May, published today by the Central Bureau of Statistics.

The average salary in the overall economy increased by 6.3% from 13,093 shekels in May to 13,865 shekels in June. This follows a 9.3% drop from the peak of 14,065 shekels recorded in March. These figures for June are based on a preliminary assessment by the Central Bureau of Statistics. Given that the average salary in the economy is significantly influenced by the high-tech sector's salaries, it is likely that it also increased in June. However, the Central Bureau of Statistics publishes quick estimates only for the overall average salary and not for individual sectors.

BUSINESS

Pliops

The French public company Kalray announced that it has decided to cancel merger talks with the Israeli chip company Pliops. Kalray and Pliops had officially announced their intention to merge in June after signing a letter of intent (LOI) outlining the principles of the merger.

Kalray wrote in the announcement of the merger cancellation that.

The economic conditions, especially those in the financial markets, are not suitable for completing a merger that requires significant capital investment and value creation for shareholders.

Kalray is traded on the Paris Stock Exchange, and shareholders have shown a lack of confidence in the emerging deal: since the announcement of the planned merger with Pliops, Kalray's value has been cut by more than half, and the company is currently traded at a value of only 71 million euros ($76 million).

BlueTree Technologies

Despite having to close its facilities in Kiryat Shemonah due to Hezbollah missile attacks, Israeli sugar-reducing startup BlueTree Technologies raised $2.26M, including from French giant Sucden, in a round led by OurCrowd. Sucden Ventures is the VC arm of the Group Sucres et Denrées, a French company specializing in alternative proteins, novel ingredients, and plant and crop sciences.

BlueTree also obtained self-affirmed FDA food-safe status for its proprietary sugar reduction technology and system. The company uses advanced separation techniques to selectively remove naturally occurring sugar molecules from beverages such as juices, milk, and beer. This approach preserves essential nutrients, aroma, and texture while reducing sugar levels. Michael Gordon, CEO of BlueTree, said:

Although we remain displaced from the northern Israeli AgTech valley in the Galilee, where we graduated from Israel’s Fresh Start incubator in June 2022, our commitment to the region endures. With this additional funding, we aim to make a significant impact worldwide, one sugar molecule at a time.

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A PIECE OF HISTORY

Terror Attack in Machneh Yehudah Market

On July 30, 1997, Jerusalem was rocked by a devastating terrorist attack when two Palestinian suicide bombers detonated explosives in the crowded Mahaneh Yehudah market. Dressed in black suits and carrying bombs in attache cases, the bombers triggered twin explosions about 15 seconds apart in the bustling open-air fruit and vegetable market. The attack, which occurred around 1:15 PM, claimed the lives of 16 people, including the bombers themselves, and left more than 150 injured, many of them seriously.

Witnesses described the bomber as men wearing dark glasses, dressed in black jackets and white shirts, stationed about 90 feet apart in the market. Each carried a bomb containing approximately 20 pounds of explosives, packed with bolts and nails to maximize casualties. The explosions produced a horrific scene, with a huge fireball and a shower of bodies, limbs, and debris. The narrow market alleys were engulfed in chaos as people fled in every direction while rescue workers rushed to aid the victims.

Hamas claimed responsibility for the attack, issuing a statement demanding that Israel release Palestinian prisoners. This bombing was the deadliest terrorist attack since Prime Minister Benjamin Netanyahu took office a year earlier, and it abruptly halted ongoing peace efforts. Netanyahu fiercely criticized Palestinian leader Yasir Arafat, demanding a complete change in policy. In response to the attack, the Israeli government announced several measures, including the suspension of peace talks, the sealing of Palestinian areas, and potentially further actions against terrorists.

The Machaneh Yehudah bombing was one incident in a series of attacks that had plagued Israel over the previous three and a half years, during which fifteen suicide bombers struck and killed at least 140 people.

Today’s Zoom Briefing