DAY 643 OF WAR: Terror Attack in Gush Etzion; State of Ceasefire Talks Remain Uncertain; Netanyahu Meets With Families of Hostages; Apple Expands R&D Efforts in Israel

Tel Aviv Diary, July 10, 2025

Just as I was preparing to send out the Tel Aviv Diary last night, news broke of an Israeli soldier killed in southern Gaza’s Khan Younis. At the time, details were scarce; we published only the brief statement issued by the IDF before we posted.

Today, the picture has come into sharper focus. According to military reports, a group of Hamas terrorists emerged from a tunnel shaft in Khan Younis, climbed onto an engineering vehicle, and attempted to seize and kidnap the soldier. He resisted, and was killed in the struggle. The terrorists then tried to drag his body back into the tunnel, but fellow soldiers intervened and repelled the attack.

This incident highlights a troubling escalation: a sign of what appears to be a growing pattern of coordinated, close-range assaults by Hamas fighters. The soldier killed was Master Sergeant (res.) Avraham Azulay z”l, from Yizhar.

WEST BANK TERROR

Earlier today, two terrorists carried out a deadly attack near the Rami Levi supermarket in Gush Etzion, fatally shooting security guard Shalev Zvuloni (22). Initial reports indicate that the assailants may have been members of the Palestinian Authority Security Services, though this has yet to be officially confirmed. Another account suggests the men had recently completed a police training course in Qalqilya just three months ago.

Tragically, the attack took place at the exact same location where Ari Fuld was murdered in a terrorist stabbing in 2018—a haunting echo of past violence in the area.

CEASEFIRE TALKS

Meanwhile, the situation in Washington remains extremely murky. In a surprising twist, it now appears that Prime Minister Netanyahu is set to return to Israel tonight. His departure is reportedly scheduled for shortly after this evening’s edition of Tel Aviv Diary is scheduled for release. Still, uncertainty lingers—one journalist accompanying the delegation was overheard telling his wife, “Until the plane takes off, we won’t know if I’ll be home for Shabbat.”

So while I’m writing that Netanyahu is heading home, it’s entirely possible I’ll wake up to find he’s staying put in Washington. That said, Netanyahu’s departure tonight from DC seems likely. Despite Netanyahu’s fondness for extended U.S. stays, President Trump is scheduled to travel to Texas tomorrow and appears to have little time—or immediate interest—to engage further for further involvement in the Israeli file.

As for the ceasefire talks in Doha, they appear to have hit a major snag. At the center of the dispute is an Israeli map presented to Hamas, detailing the IDF’s planned positions during a ceasefire. According to reports, Hamas reacted with disbelief, allegedly saying: “If this is what they’re proposing, they might as well just conquer all of Gaza—there’s no point in a ceasefire.” A U.S. negotiator, upon reviewing the proposal, reportedly remarked: “This map looks like it was drawn by Smotrich—not the Israeli military.”

THE RISKS OF EASING PRESSURE ON HAMAS TOO SOON

The logic behind this approach is difficult to follow. If the goal is to reach a final settlement, it would be far more logical to negotiate now—while Israeli forces are still advancing, exerting direct military pressure on Hamas, and maintaining control over the bulk of humanitarian aid entering Gaza. It’s unclear why anyone would expect Hamas to become more conciliatory after Israel withdraws from key areas, suspends operations, and permits unrestricted aid—steps that would, in effect, strengthen Hamas’s hold on the territory.

Analysts across the spectrum have expressed similar concerns. The assumption that Hamas will become more flexible once it regains ground and reasserts control simply doesn’t align with any coherent strategic rationale.

One proposal reportedly under discussion in the negotiations involves reinstating Qatari funding to support reconstruction efforts in Gaza. But this idea carries heavy baggage. In the years leading up to October 7, Qatari money flowed directly into Hamas’s hands— bolstering its rule, reinforcing its military infrastructure, and ultimately helping enable the massacre that followed.

Reinstating those funds now, even under the guise of humanitarian aid or rebuilding, raises deep concerns. Without strict safeguards, such a move risks repeating past mistakes—funneling resources back into the very group that brought about the current crisis. Involving Qatar in Gaza seems like a repeat mistake

NETANYAHU UPDATES FAMILIES OF SEVERAL HOSTAGES IN DC

Netanyahu also met last night in Washington with families of the hostages, telling them that negotiations were moving forward. He was doing everything possible to bring the talks to a successful conclusion. The Prime Minister assured the families that the planned 60-day period would be used to negotiate a final settlement and secure the return of all remaining hostages. “We’re not going to wait until the 60th day to start negotiating,” he said. “We’re going to begin on the first day.”

Nevertheless, at this point in time, Netanyahu is expected to return to Israel overnight—once again leaving the families of the hostages disappointed and without concrete progress. And yet, there is a sliver of hope: for the first time, Netanyahu publicly acknowledged the prospect of ending the war.

On Saturday night, many of us will return to Hostage Square—once again protesting, unsure whether anything has truly changed. Perhaps a deal will materialize next week. Perhaps not. The hard truth remains: if Netanyahu had genuinely wanted an agreement, it’s unclear why one wasn’t reached this week. Trump was eager—ready to make the announcement, likely from the Rose Garden or the Oval Office. But Netanyahu wasn’t prepared to take the steps required to deliver that victory.

Still, despite the missed opportunity, the door hasn’t fully closed. An agreement could yet come together in the days ahead.

REMEMBER OUR SOLDIERS

There is one critical point I must emphasize—beyond the issue of the hostages: our soldiers remain in Gaza, and they are still being killed. They continue to fight a grinding guerrilla war, physically and mentally depleted, with equipment that is equally worn down. Israel has never experienced a conflict of this duration—especially one so lacking in clearly defined objectives.

At this stage, no one can clearly articulate what the current goals are, beyond the increasingly hollow phrase “total victory.” Moreover, no one can explain what that would look like or how it might be achieved. As I cautioned before the ground campaign began: no war can be won through military means alone without a coherent political objective. Israel never outlined a political vision for Gaza—and without one, there was never a path to meaningful victory. Only a path leading to escalation, exhaustion, and loss.

MY TAKE ON “FOR ISRAEL IT PAYS TO BE A WINNER”

A reader directed me to Bret Stephens’ column in The New York Times yesterday, titled “For Israel It Pays to Be a Winner,” (linked here), in which Stephens essentially praises Israel’s military success over the course of the war.

The reader asked: “Wasn’t it ultimately a good thing that the war didn’t end a year ago—since otherwise, these battlefield achievements wouldn’t have occurred?”

To respond, two points are worth making. First, the gains in Lebanon were accidental, and not the results of a strategic plan. There was no master blueprint that said, “Let’s extend the war in Gaza so we can eventually strike Hezbollah or Iran.” Those developments came later—driven more by circumstance than design.

Furthermore, the strike on Iran happened only in response to unfolding events in Lebanon and Syria—none of which were foreseen or part of a broader strategy. Still, those developments significantly weakened Iran, particularly after the two direct Iranian attacks on Israel and the forceful Israeli response that followed.

However, the second—and more critical—point is this:: a year and a half ago, no one could have predicted that Trump would return to the presidency. More importantly, some of the hostages who are now dead might still be alive had a deal been reached sooner. So too might many of the soldiers who have since fallen. Wars demand sacrifice—but they need not drag on indefinitely, and they shouldn’t. Israel is not built to sustain a war of this length.

That said, Bret Stephens is correct on one key point: As a result of this war, Israel’s position in the Middle East has been undeniably transformed for the better.

HOUTHIS

Early this morning, we were jolted awake by a Home Front Command alert warning of an incoming missile threat in our area. It was 5:30 a.m. We dressed quickly, ready to head to the shelter. Minutes later, the sirens blared. and within minutes the sirens blared. We entered the shelter and waited— and soon after, word came that the missile had been intercepted. This time, it was launched from Yemen—another Houthi attack.

As I noted last night, the Houthis remain highly active, continuing to fire toward Israel and targeting international shipping lanes. They are a persistent and dangerous threat—one that, sooner or later, will have to be dealt with directly.

NEW STUDY: ADDICTION & MENTAL HEALTH CASES RISE SHARPLY SINCE OCTOBER 7

A comprehensive national study released by the Israel Center for Addiction and Mental Health (ICAMH) at Hebrew University has revealed a sharp and sustained rise in substance abuse, behavioral addictions, and mental health disorders among Israelis in the wake of the October 7, 2023 attacks and the Iron Swords war. The report—titled “Prevalence of Substance and Behavioral Addictions and Common Mental Health Disorders in Israel, 2022–2025”—draws on three nationally representative samples collected before and after the crisis: April 2022 (pre-war), December 2023 (post-attack), and February 2025. This rare longitudinal view provides a powerful lens into the psychological toll of national trauma, war, and prolonged societal stress.

The study found that more than 15% of the population exhibited problematic use of substances or behaviors by early 2025. Notably, the use of prescription sedatives and non-medical opioids rose steadily, while symptoms of PTSD, anxiety, and depression surged after the attacks and remained elevated more than a year later. Some behavioral addictions—such as excessive gambling and social media use—spiked in the immediate aftermath but have since declined. However, deeper-rooted issues, including sedative and opioid misuse, have continued to rise, pointing to longer-term mental health consequences.

The study also identified stark demographic patterns: young adults (ages 18–34), secular and traditional Jews, and men reported the highest rates of addiction and psychological distress. Interestingly, while ultra-Orthodox participants showed lower rates of most behavioral addictions, they reported higher use of prescription sedatives.

These disparities were analyzed using advanced statistical modeling, underscoring the need for targeted interventions. The authors emphasize that PTSD, anxiety, and depression have not returned to pre-war levels, and they call for a sustained national response to what is rapidly becoming a long-term mental health crisis in Israeli society. You can read the whole study here.

APPLE IN ISRAEL

Over the past decade and a half, Apple has quietly built one of its most significant R&D hubs outside the United States—right here in Israel. This expansion is the result of a series of strategic acquisitions that began in 2011, when Apple purchased Anobit Technologies for $400 million. Anobit’s advanced flash memory optimization technology was already being used in Apple’s iPhones and MacBooks, and the acquisition laid the groundwork for what would become Apple’s presence in Herzliya.

Two years later, Apple acquired PrimeSense for $345 million. PrimeSense was best known for powering Microsoft’s Kinect motion-sensing system for the Xbox 360 and had developed 3D sensors that could detect motion and facial expressions—technologies that would later influence Face ID and AR-related developments. Subsequent acquisitions followed, including LinX Computational Imaging in 2015, RealFace in 2017, and Camerai in 2019—all reinforcing Apple’s focus on imaging, facial recognition, and augmented reality.

Now, in a move that had remained under the radar until recently, Apple has added another Israeli company to its portfolio. Earlier this year, Apple quietly acquired TrueMeeting, a Tel Aviv-based startup specializing in real-time 3D avatar creation, for an undisclosed sum. The acquisition was formally approved by the Israeli Competition Authority in January 2025, but had not been publicly acknowledged until now. TrueMeeting, previously known as CommonGround AI, was co-founded by Amir Bassan-Eskenazi and Rani Oz, both of whom were also behind BigBand Networks, which went public on Nasdaq in 2007. The startup had raised approximately $45 million from prominent investors including Grove Ventures, Matrix Partners, StageOne Ventures, and Check Point co-founder Marius Nacht. According to sources familiar with the deal, the acquisition price was likely lower than the total capital raised.

TrueMeeting’s technology allows users to generate highly responsive 3D avatars using smartphone cameras, creating a more immersive and realistic experience for video communication and virtual interaction. With an estimated 20 employees, the company has now been absorbed into Apple’s Israeli R&D operations.

This acquisition is seen as another step in Apple’s broader push into augmented reality, spatial computing, and next-generation communication tools—an effort that includes the Vision Pro headset and long-term ambitions around the “spatial internet.” By integrating TrueMeeting’s real-time avatar rendering capabilities, Apple further strengthens its foothold in the evolving 3D and AR ecosystem, continuing Israel’s role as a quiet engine behind some of its most cutting-edge innovations.

Nominal

Nominal, a startup developing AI agents for enterprise resource planning (ERP) systems, has raised $20 million in a Series-A funding round led by Next47 and Workday Ventures—the investment arm of Workday—with participation from existing investors Bling Capital, Hyperwise Ventures, Vela Partners, Incubate Fund, and private backers from companies such as Salesforce, Justworks, and Intel, bringing its total funding to approximately $30 million.

Founded in April 2023 by Guy Leibovitz (CEO) and Golan Kopichinsky (CTO)—the team behind Cognigo, which was acquired by NetApp in 2019 for $70 million—Nominal currently employs around 40 people split between Israel and the U.S., with plans to double its headcount in the coming year. The company’s platform integrates with existing ERP systems to automate finance-related workflows, including account reconciliations and financial analysis, through autonomous AI agents that understand business context and company policies without the need for complex configurations.

According to Nominal, its agents have already saved over 50,000 hours of manual accounting work, addressing a growing labor gap in the financial sector. Leibovitz said:

The last major shift in the ERP market happened with the move to the cloud 25 years ago. Now, the AI era is transforming how we operate across the board. Unlike traditional systems of record, Nominal is a system of intelligence—it doesn’t just manage work, it performs it. With over 300,000 CPAs missing from the U.S. workforce, agentic AI automation isn’t optional anymore—it’s a must. Finance super-intelligence means fewer errors, better insights, stronger compliance, and smarter decision-making.

Ryft

Secures $8 Million to Revolutionize Cloud Data Management

Israeli startup Ryft emerged from stealth today with an $8 million seed round led by Index Ventures and Bessemer Venture Partners, backed by notable angel investors including Wiz co-founder Roy Reznik and EON founder Ofir Ehrlich. The round signals strong investor confidence in what CEO Yossi Reitblat calls a new "Cloud Storage Management" category that promises to solve one of the most persistent challenges in enterprise data infrastructure.

Founded in 2024 by Reitblat, CTO Yuval Yogev (former Chief Architect at Sygnia), and VP of R&D Guy Gadon (former Meta Tech Lead), Ryft tackles the fundamental trade-off companies face with cloud storage: choosing between managed products like Snowflake that offer simplicity but lock in data, or storing data directly on cloud platforms like AWS for control but with significant operational overhead. The company's solution automates data management by analyzing how organizations access their information and structuring it optimally, allowing customers to maintain control of their data while accessing it through any tool or engine—including large language models—without costly duplication.

With 15 employees across offices in Israel and New York, Ryft positions itself as a neutral player in a market where traditional providers face an innovator's dilemma. As Reitblat explains, existing solutions like Snowflake and BigQuery could theoretically support similar approaches, but doing so would undermine their current business models. This creates an opening for Ryft to establish itself as the go-to solution for companies seeking the benefits of both managed services and direct cloud storage without the traditional compromises.

Emerging from stealth, Ryft has announced $8 million in Seed funding as it enters the data infrastructure market with a mission to help businesses manage their data more flexibly and independently—free from the constraints of dominant cloud providers. The round was led by Index Ventures and included participation from Bessemer Venture Partners, as well as notable angel investors from the founding team of Wiz and senior executives at Zscaler, Crowdstrike, Confluent, and Cisco.

Ryft was founded in 2023 by Yossi Reitblat, Yuval Yogev, and Guy Gadon, all veterans of Israel’s intelligence community, and is building its platform around Apache Iceberg, an open-source architecture designed for modern data lakes. By offering a managed service layer that handles security, compliance, and performance optimization, Ryft aims to deliver the convenience of cloud-native tools without locking customers into a single vendor ecosystem. As organizations increasingly grapple with the complexities and costs of cloud data platforms like Snowflake, Databricks, Microsoft, and Google, Ryft positions itself as a more agile alternative—allowing users to maintain control while abstracting away operational burdens.

“Companies want to move faster and build the right foundation for AI, but they can’t afford to get bogged down in complicated infrastructure,” said Reitblat, who serves as CEO. Ryft reports it already has customers across sectors including finance, e-commerce, adtech, gaming, and cybersecurity. With the fresh capital, the startup plans to expand its engineering team, strengthen its partner ecosystem, and accelerate its go-to-market strategy.