DAY 407 OF THE WAR: Soldier Killed In Lebanon, Heavy Barrage on Haifa Causes Damage, Settler Violence in the West Bank, Government Abandoning the Hostages

Tel Aviv Diary, November 16, 2024

Zoom Briefing: Sunday, November 17th, 6 PM Israel, 4 PM GB, 11 AM EST, 8 AM EST

Today, Tel Aviv residents basked in the beauty of an autumn day. The sun was shining brightly, the temperature hovered in the mid-70s, and if you avoided looking at your smartphone, you could almost forget that Israel is still at war. Sadly, this peaceful illusion was not shared by those in the northern regions of the country.

By 9 PM, there had been 14 separate attacks, mostly consisting of rocket barrages coupled with some drone strikes, reaching areas as far south as Haifa. Several of these attacks were significant, with up to 30 rockets fired in a single barrage. Thankfully, there were no serious injuries or major damage reported. All drones were intercepted successfully. Additionally, two rockets fired from Gaza at Sderot and a missile from Iraq approaching Eilat were also intercepted. In short, today was a very active day in the North.

This evening, ten rockets were fired at Haifa. Several landed, damaging multiple buildings, including a synagogue, and igniting fires. Fortunately, only two individuals were wounded, each sustaining minor injuries.

Meanwhile, Israel has been conducting sustained airstrikes on the Dahiya district of Beirut, its surrounding neighborhoods, and Tzur. Over the past two days, there have been approximately eight waves of airstrikes, successively targeting 20 sites, one after another. It is evident that Israel is exerting maximum pressure on Hezbollah to accept the proposed ceasefire agreement. At the same time, Israel appears determined to eliminate what remains of Hezbollah’s munitions and control centers while the opportunity persists.

The decision now rests entirely with the Lebanese government to accept or reject the ceasefire proposal put forth by the United States. Throughout the day, conflicting reports emerged regarding Lebanon’s readiness to agree. While I will refrain from speculating on their decision, it is evident that Hezbollah is in dire need of a ceasefire.

As part of the strategy to pressure Hezbollah into accepting Israel's terms, ground operations targeting the second tier of villages in southern Lebanon continue. Tragically, another Golani soldier, Ori Nisanovich (21), from Jerusalem, lost his life in combat there.

HOSTAGES

If it wasn't already apparent, the Israeli government has effectively abandoned any hostages not recoverable through military rescue efforts. Hamas insists on nothing less than a cessation of all hostilities and Israel's withdrawal from Gaza as conditions for any agreement. At this stage, Israel is unlikely to consent to these terms, partly because it has not developed an alternative to Hamas's governance; as such, withdrawing would likely allow Hamas to regain control

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Finance Minister Smotritch explicitly stated tonight that he will not allow any agreement that entails an end to the fighting. So there we have it … regardless of how fervently Israelis express their concern for the hostages, or how frequently they visit the hostage square, take to the streets throughout the country in protest, or conduct hunger strikes in front of the Knesset, these actions will not influence the government's decisions.

A SET OF FLARES FIRED ON NETANYAHU’S CAESAREA RESIDENCE

At 7:30 PM, two flares were fired at the residence of the Prime Minister in Caesarea, causing damage to the property's yard. Israeli Police and Shin Bet security forces are currently present at the scene. The Prime Minister and his family were not present during the incident. As a result, a joint investigation has been initiated by the Israel Security Agency (Shin Bet) and the Israel Police. This incident is regarded as a serious escalation and calls for the immediate implementation of appropriate investigative measures. The action has been widely condemned across all spectrums of Israel’s political parties.

ISRAEL’S ATTACK ON IRAN

Recently, intriguing information surfaced regarding Israel’s alleged attack on Iran. Reports indicate that, in addition to the targets Israel acknowledged, it also hit a covert nuclear weapons research facility in Parchin. The facility's classified status reportedly prevented Iran from publicly confirming its destruction. Furthermore, this site was purportedly crucial to the weaponization of Iran's nuclear capabilities. The destruction of this facility is believed to have significantly hinder Iran’s progress in developing a deployable nuclear weapon.

WEST BANK

On Saturday, according to the Israel Defense Forces (IDF), dozens of masked settlers carried out a violent assault on the West Bank village of Beit Furik near Nablus, setting fire to several buildings and a car. This incident followed allegations that Palestinians had stolen a herd of sheep and attacked an Israeli man. The confrontation escalated with both sides engaging in stone-throwing, further heightening tensions.

Troops and Border Police officers were dispatched to the scene, deploying riot dispersal methods to separate the conflicting groups. The military reported no injuries, and, stated that as of now, no arrests have been made. In addition, the IDF strongly condemned the attack, asserting, “The IDF condemns events of this type and will continue to act with determination to maintain security and order in the region.”

Haaretz reported that military sources suspect the perpetrators originated from the settlement of Itamar, known for its far-right population. The attack underscores the ongoing volatility in the region and raises serious concerns about unchecked violence in the West Bank.

IRON DOME FOR GREECE

Israel is negotiating a sale of Iron Dome systems to Greece, valued at € 2 billion. This deal, along with the sale of Arrow systems to Germany, has transformed Israeli missile and rocket defense systems into one of Israel’s major defense exports, particularly to friendly democracies.

MURDER IN THE ARAB SECTOR

Over the course of the last two days, there were four additional murders in the Arab-Israeli communities of Rahat, Ar'ara, Lod, and Kafr Qara. This brings the total number of murders in Israeli Arab towns and villages in the year 2024 to 209.

TRUMP APPOINTMENTS

In another interesting appointment by the Trump Administration, Robert Kennedy Jr. has been named to lead the Department of Health and Human Services (HHS). Over his presidential campaign, Kennedy evolved from a mild critic to a staunch supporter of Israel. However, there are concerns about his past statements regarding COVID.

Kennedy once claimed that the virus was engineered to spare Ashkenazi Jews and Chinese people—a notion as outlandish as it is unfounded. Notably, the first reported case in the U.S. involved an Ashkenazi Jew from New Rochelle, who, although he survived, took a full year to recover.

ECONOMICS

Israel’s Consumer Price Index (CPI) for October increased by 0.5%, while inflation over the past 12 months remained steady at 3.5%, unchanged from the previous month. This is attributed to the fact that the CPI for October 2023 also experienced a 0.5% rise, as reported by the Central Bureau of Statistics (CBS) today (Friday). However, when considering only the initial ten months of the year, inflation accelerated to a particularly rapid pace of 3.9%, characterized by a decline in prices during the latter two months of 2023.

This month’s price increases were most pronounced in the categories of clothing and footwear, which rose by 3.5%, transportation by 1.9%, and food and health by 0.5%. Conversely, price decreases were recorded in the categories of owner-occupied housing services and culture and entertainment, each by 0.2%.

BUSINESS

Israeli startup caVos Biotherapeutics has raised $3.3 million in a funding round led by Entrée Capital, NFX, Alumni Ventures, and Tal Ventures, with participation from the Innovation Authority's startup track. This brings their total funding to $4.8 million since 2021, including earlier investments from aMoon Fund and the Innovation Authority. The company, which employs four people in Rehovot, is built on Prof. Yuval Tabach's research from Hebrew University.

caVos focuses on studying exceptional species in nature - animals that resist cancer or maintain muscle mass during hibernation—to identify genetic factors behind these "super traits." By leveraging reduced genomic sequencing costs, they aim to translate these biological capabilities into human treatments using mRNA technology.

OCTOBER 7TH, BEARING WITNESS

A new book titled “The October 7th War” has just been released in Israel by author Ziv Koren. The proceeds from the sale of this exquisitely crafted photo book will be donated to the victims of the conflict. The oversized photo book is a compilation of poignant photo essays that chronicle some of the most intense moments of the past year. Chronologically arranged, the book captures the harrowing realities of the war. While the content may be challenging to confront and the price of the volume expensive, it is highly recommended that readers consider purchasing this poignant visual testimony when it becomes available via Amazon on December 1st.

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A PIECE OF HISTORY

The Summer of Discontent: From the Cottage Cheese Revolt to Tent Cities

The summer of 2011 in Israel began with a seemingly innocuous protest over the price of cottage cheese and grew into a nationwide movement demanding systemic economic reform. What started as a grassroots boycott, rapidly transformed into tent cities, regular demonstrations, and a critical examination of the economic policies that had defined Israel for the previous decade.

The Cottage Cheese Revolt

In mid-June 2011, shelves in Israeli supermarkets remained stocked with unsold containers of cottage cheese. This boycott, orchestrated through Facebook, was a response to the price of the product doubling over five years—from 4 shekels to 8 shekels per container. Although triggered by the escalating cost of cottage cheese, the protest symbolized far deeper frustrations.

Economically, the issue stemmed from Israel's deregulation of the dairy industry. The government had eliminated price controls, anticipating that free-market competition would keep prices in check. However, the milk industry remained under a government-sanctioned monopoly, while the cheese market was dominated by just three companies, with strict restrictions on imports. This situation led to price gouging, leaving consumers with few options.

Yet the revolt was about more than just cheese. It exposed a broader issue: escalating income inequality. While Israel’s economy had expanded rapidly in the preceding years, 80% of Israelis had not seen their incomes grow in real terms. Concurrently, prices continued to rise, making Israel one of the most expensive places to live globally. With the average Israeli household earning just under 8,000 shekels per month (roughly $27,000 annually), the economic strain was palpable— particularly when compared to similar earnings in Western countries, where the cost of living was often comparable or lower.

The Cottage Cheese Revolt served as a wake-up call, sparking widespread discussions about the economic disparity in Israel.

The Tent Cities and the Housing Crisis

By July 2011, the discontent had spread beyond supermarket aisles. A tent city sprang up on Tel Aviv’s Rothschild Boulevard, as protesters sought to draw attention to the escalating cost of housing. In recent years, rental prices in Tel Aviv had nearly doubled, making the city unaffordable for a significant portion of its residents.

As an individual actively seeking a rental property in Tel Aviv during that period, I deeply understood the grievances ueleing these protests. The cost of apartments in Tel Aviv paralleled those in prominent global cities, approximately half the price of desirable neighborhoods in Manhattan. However, Tel Aviv lacked the necessary infrastructure, such as a functional subway system, which would have made suburban living a feasible alternative, unlike in New York. The Tel Aviv subway project, beset by decades of delays dating back to the 1970s, was still incomplete, forcing residents to rely on costly and inefficient commuting options.

The housing crisis mirrored broader economic challenges faced by Israel. Real estate prices had surged to Western levels, yet the Israeli middle class had not reaped the benefits of the country’s economic growth. Wages lagged significantly behind those in other developed nations, exacerbating the financial strain on households.

From Local Protest to National Movement

Initially dismissed as a movement of affluent Tel Avivians unwilling to pay market rates, the tent city protests rapidly gained momentum. By August, they had evolved into a nationwide movement, with weekly demonstrations drawing hundreds of thousands of participants across the country.

What distinguished this movement was its unwavering focus on economic and taxation policy avoiding divisive political issues. The protesters refrained from criticizing government spending on settlements or Haredi community—topics that had previously derailed civil protest movements by rendering them susceptible to political exploitation. Instead, they advocated for:

• The termination of planned tax reductions for the affluent and the introduction of a higher tax bracket for millionaires.

• A shift in the tax burden from indirect taxes, such as VAT, to more progressive taxation.

• Increasing social spending to address housing, education, and healthcare.

By focusing on crony capitalism and income inequality, the movement garnered broad public support. Polls indicated that over 70% of Israelis supported the protests, and 38% expressed a belief that the demonstrations would influence their voting decisions in the upcoming election.

Regrettably, the overarching slogan of the demonstrations was “Ha’am Doresh Tzedek Chevrati,” which translates to “The nation demands social justice,” was too vague and general. Consequently, the message was easily misdirected. Prime Minister Netanyahu managed to divert the protesters’ attention by establishing the Trachtenberg Commission to investigate pricing. Ultimately, the protests dissipated, with several of the leaders transitioning into politics, yet no significant changes were achieved. Prices continued to rise unabated. The only notable outcome was that cottage cheese producers refrained from raising their prices for a decade.