DAY 317 OF THE WAR: Hostage Negotiations, Blinken Lands in Israel, West Bank Terror Attack, Possible Terror Attack in Tel Aviv, Netanyahu In Time Magazine— The Facts
Here is what Prime Minister Netanyahu said when he opened today’s cabinet meeting:
Israel is prepared for any threat—both in defense and in offense. We are determined to defend ourselves, and we are also determined to exact a very heavy price from any enemy that dares to attack us—from any arena.
At the same time, we are negotiating for the release of our hostages. This is a moral and national mission of the highest order. We are conducting very complex negotiations with the other side being a murderous, unrestrained, and recalcitrant terrorist organization.
But I want to emphasize—we are engaged in negotiation, not in surrender. There are things we can be flexible about, and there are things we cannot be flexible about—and we are insistent on them. We know very well how to distinguish between the two.
Therefore, alongside the enormous efforts we are making to bring our hostages home, we firmly stand by the principles we have established, which are essential for Israel's security.
These principles—I repeat and say—align with the May 27th framework, which received American support.
I want to emphasize again: Hamas, up to this moment, remains obstinate. It hasn’t even sent a representative to the talks in Doha. Therefore, the pressure should be directed at Hamas and Sinwar, not at the Israeli government.
Strong military pressure and strong diplomatic pressure—this is the way to achieve the release of our hostages.
Meanwhile, during a conversation with fighter pilots and technical crews, Defense Minister Gallant stated at the Nevatim Air Base:
We are in days of opportunities and risks. We prepared the Air Force for days like these—thanks to the ability to strike anywhere, we have the confidence to take appropriate risks.
Reports emerged tonight that the negotiating team argued with Prime Minister Netanyahu, urging him to show more flexibility on certain issues, particularly on the matter of monitoring Gazans moving to the North. Allegedly, Netanyahu replied that this is a diplomatic concern, not a military one, and that the decision was his to make.
BLINKEN LANDS IN ISRAEL
Secretary of State Blinken arrived in Israel tonight (for the 9th time during this war) and will meet with Netanyahu to keep up the pressure to secure an agreement. Of course, the unpredictable variable remains Hamas. Tonight, Hamas claimed to reject the new summary framework, claiming that the compromise plan too closely reflected Netanyahu’s demands. The Egyptians and the Qataris claim to be able to pressure Hamas into reaching an agreement. We will have to wait to see if that is indeed true.
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IN THE NORTH
It was another day of intense fighting in the North, with Israel eliminating another Hezbollah commander in South Lebanon. In retaliation, Hezbollah launched nine barrages targeting towns in the northern border communities.
WEST BANK
A terrorist critically wounded a security guard, Gidon Peri (38), and stole his gun at the Bar-On industrial park, near the West Bank settlement of Kedumim. The terrorist then fled the scene, and the security guard subsequently died from his injuries.
Another day has passed, and no one has been arrested for the attack perpetrated by Jewish terrorists in the town of Jit. The Attorney General’s Office convened an emergency meeting with the Security Services and the police, demanding them to collect evidence and identify those responsible.
TERROR IN TEL AVIV?
Tonight, at about 8 PM, the police received numerous calls reporting an explosion in Tel Aviv. Upon arrival, police found body parts strewn across the area. The person believed to have caused the explosion was captured on street cameras a few minutes earlier carrying a large backpack. It is believed that the backpack exploded earlier than planned. One other person, who was passing by on a scooter, was moderately injured and has been hospitalized. Although it is suspected that this was a botched terror attack, confirmation hinges on identifying the individual who carried the exploding backpack.
Combat continues in Gaza, with the IDF expanding operations in Khan Younis. During these operations, one paratrooper was seriously wounded.
Here’s the statement released by the IDF Spokesman regarding today’s fighting in Gaza:
Following intelligence indications of terrorist activities and launches towards Israeli territory from the humanitarian zone, Division 98 forces expanded their operations in the Gaza Strip over the past 24 hours. Accompanied by a fire support framework, dozens of terrorist infrastructures were destroyed, and terrorist cells were eliminated.
The 7th Brigade’s battle team expanded its operations to the outskirts of Deir al-Balah after eliminating dozens of terrorists and destroying an underground route in northern Khan Younis.
The Paratroopers Brigade’s battle team expanded its operations to western Khan Younis and the ‘Hamad’ neighborhood while simultaneously exploring and identifying additional underground routes.
NETANYAHU IN TIME MAGAZINE— THE FACTS
Last week, Netanyahu received some positive press coverage in Israel following his interview with Time Magazine, which was widely reported in the Israeli media. However, the glow of that interview dimmed today after Time published a lengthy articlehere that fact-checked Netanyahu, highlighting numerous falsehoods he told during the interview. I have often drawn comparisons between Netanyahu and Trump. While both engage in lying, there is a distinction: Netanyahu lies deliberately and with intent, whereas Trump, I believe, often does not realize whether or not he is telling the truth.
Here’s a bit of positive news: Last week, residents from several kibbutzim ended their extended stays in hotels. Those from Kibbutz Nir Am had been staying at the Herod's Hotel in Tel Aviv. The day before their departure, a ceremony was held in the hotel lobby where the Nir Am residents distributed roses to all the hotel staff, as a show of praise and a token of appreciation for their exceptional care over more than 300 days. The members of the kibbutz even granted the hotel manager full membership in the kibbutz.
A related story involves the members of Kibbutz Be’eri, who also vacated their hotel accommodations. Kibbutz Be’eri members are all relocating to Kibbutz Hatzerim, which earlier in the war voted overwhelmingly (97% in favor) to establish a second kibbutz on their grounds to accommodate Be’eri’s members until their own kibbutz can be reconstructed. Both Kibbutz Hatzerim and Kibbutz Be’eri are traditional kibbutzim that have not been privatized. Both are wealthy kibbutzim that benefit from prosperous industries. Hatzerim is home to a pioneering drip irrigation company, while Be’eri boasts a successful digital printing business specializing in credit cards and more. All Be’eri members have moved into temporary housing on Hatzerim’s land, where they will operate independently but collaborate on shared tasks where practical.
[Note: I thank The Promised Podcast for this story.]
A little personal reflection…
As everyone is aware, this has been a very difficult year. I never considered myself someone prone to crying, yet I can’t count how many times I’ve been moved to tears during the last 10 months. This past weekend, I found myself crying at a rather unexpected moment. I was watching the final episode of “Masters of the Air,” a nine-part series produced by Steven Spielberg and Tom Hanks, which explores the US air war in Europe during W.W.II.
The last part was somewhat celebratory in nature. It depicted the liberation of American POWs as U.S. troops advanced deeper into Germany. In this episode, with no more targets to bomb, the B-17 bombers were repurposed to drop food supplies to Dutch civilians. It marked the end of the war in Europe, and the return of the airmen to their homes.
So, why was I crying? Because, despite the unspeakable horrors of World War II, this episode celebrated victory. I cried because I was watching the celebration of victory in Europe, knowing that there will be no such victory here in Israel now. This feels like a war with no victory in sight. All we hope for is to find a way out of our dire circumstances. I fear that our current leadership seems determined not to end the war for political reasons.
The Israeli economy is showing signs of strain in the aftermath of the ongoing war. According to recent data from the Central Bureau of Statistics, GDP growth in the second quarter of 2024 was lower than expected, reaching only 1.2% on an annualized basis. This falls short of analysts' predictions of over 3% growth.
More alarmingly, when compared to the same quarter in 2023, the economy actually contracted by 1.4%, indicating that the economic downturn is intensifying rather than recovering from the sharp decline experienced during the height of the conflict. If you take into account GDP per capita, which accounts for population growth, it showed a 0.4% decline in the second quarter, suggesting that the economy contracted when adjusted for population increase.
Several key economic indicators paint a mixed picture. While business GDP and public spending showed some growth, exports have been a major drag on the economy, declining for the third consecutive quarter. Private consumption saw a significant increase, partly due to Israelis spending more domestically rather than traveling abroad. However, investments in fixed assets remained modest, and the high-tech sector experienced a substantial drop in investments.
The slower-than-anticipated economic growth could have far-reaching consequences for Israel. It may affect the country's debt-to-GDP ratio and overall perceptions of its economic management capabilities during wartime. The Bank of Israel has already lowered its growth forecast for 2024 to 1.5%, while the Ministry of Finance maintains a slightly more optimistic outlook at 1.9%. These economic challenges may influence future monetary policy decisions, as the central bank balances the need to stimulate growth against rising inflation, which reached 3.2% in July.
BUSINESS
The Israeli company TipRanks, which developed tools for investment analysis and asset research in the capital market, announced today (Thursday) that it has sold 40% of its shares to the fintech company Prytek, headquartered in Singapore. Prytek was already the largest investor in TipRanks before the deal, holding 40% of the company. As part of the current deal, it will purchase an additional 40% from the founders, employees, and investors based on a company valuation of $200 million, meaning it will pay approximately $80 million. According to the announcement, 20% of the company will remain in the hands of institutional entities.
The escalating violence between Israel and the Palestinians in late 2000 saw multiple incidents that exacerbated tensions on both sides. On November 10, an Israeli helicopter gunship conducted a targeted killing, marking the first such action since the renewed wave of violence began. This followed a period of intense conflict, including gunfire into the Gilo neighborhood and bombings in Jerusalem, which further inflamed the situation.
In Jericho, an Israeli attack on a casino complex after the death of an Israeli soldier shocked the local population. Jericho, once a growing tourist destination, suddenly found itself embroiled in the conflict, with its residents reeling from the destruction. The attack marked a significant turning point for the town, which had previously enjoyed relative stability and economic prosperity compared to other Palestinian areas.
Amid the violence, diplomatic efforts struggled to gain traction. President Clinton met with Israeli Prime Minister Ehud Barak on November 13 and 14 to discuss the worsening situation. Their discussions reflected a stark contrast to the optimism that characterized their earlier meetings, with the focus shifting from forging peace to preventing further disaster. The U.S. administration aimed to prevent further escalation and discourage unilateral actions that could irrevocably alter the Middle East's political landscape.
The violence continued to spiral, with Israeli retaliations intensifying in response to Palestinian attacks, including a roadside bombing in Gush Katif on November 21 that killed two Israelis and wounded nine children. Israel's subsequent raids across Gaza targeted government sites, resulting in casualties and significant damage to Palestinian infrastructure. As the conflict entered its seventh week, it became clear that both sides were entrenched in a cycle of retaliation, with little hope for a peaceful resolution in the immediate future.
Amid these events, Prime Minister Barak was attempting to stabilize his coalition. One option involved bringing MK Ariel (“Arik”) Sharon into the government. While Sharon was open to joining, he stipulated one major condition, i.e., that Barak publicly denounce the Oslo accords. Barak was unwilling to comply, stating:
I told him that was a price I was not prepared to pay for his support. Despite the failure of the summit—and the terrible human cost on both sides from Arafat’s choice of violence over diplomacy—there was a wide international recognition that it was the Palestinians, not Israel, who were responsible. For us to end the Oslo process meant inviting accusations we’d never intended to reach a peace agreement in the first place, and that it was Israel that was closing the door. We would also risk forfeiting the American support we’d secured by our efforts to reach a peace deal, an asset all Israeli governments would benefit from in other circumstances and contexts in the future.
Lacking a majority in the Knesset, Barak felt compelled to call new elections, seeking a renewed mandate from the public. Despite his reservations about the outcome, Barak decided to go ahead anyway. On December 9th, during a press conference, Barak announced his resignation as Prime Minister and called for new elections, which were scheduled for February 2001.
