DAY 650 OF THE WAR: Netanyahu Apologizes For IDF Strike Near Church; Shas Ministers Resign; More Israelis Accused of Spying For Iran

Tel Aviv Diary, July 17, 2025

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Our Next ZOOM BRIEFING will take place on Sunday, July 20th

6PM Israel Time • 4PM GB • 11AM EST • 8AM PST

Invitations will go out on Sunday morning

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Israeli authorities announced indictments against a former IDF soldier accused of filming missile strikes during the war and transmitting the footage to Iranian operatives. In a separate case, a female teacher from a Bedouin clan in the Negev was arrested on similar charges. These developments bring the number of Israelis charged with espionage for Iran this year alone to 42.

The scale is unprecedented. Something is deeply wrong. Never before has Israel seen such a surge in cases of espionage involving citizens from such a wide cross-section of society—not just Arab Israelis, not just Russian immigrants, not just those from the socioeconomic margins.

Of course, part of the trend can be attributed to the ease with hostile intelligence services now recruit online, using social media and encrypted messaging apps to reach potential assets. But the broader reality is more troubling: the fact that the Iranians have managed to recruit so many people to spy on their behalf is alarming. And the most chilling question remains: if this is what’s been uncovered—how many more are still operating in the shadows?

GAZA

Israel has now mistakenly struck the only Catholic church in Gaza—just two days after unintentionally killing a group of children while targeting a Hamas operative. This afternoon, President Trump called Prime Minister Netanyahu to express concern over the church strike. Netanyahu reportedly told Trump it was a “mistake.” Later in the evening, Prime Minister Netanyahu issued a public apology in English for the attack. To the best of my knowledge, this marks the first time during the war that Netanyahu has apologized for anything.

I wrote this yesterday, but I feel compelled to say it again: What may have been tolerated in the early weeks—or even months—of the war, when objectives were at least vaguely defined and a strategy for urban combat had yet to materialize, can no longer be justified.

Still, the scale of “collateral damage”—a sanitized term for the killing of civilians—has become indefensible. A full withdrawal is not yet possible; while hostages remain in enemy hands. But it is time to pause, pursue a negotiated agreement to secure the release of all hostages, and bring our forces home. Only then can we begin the urgent task of reassessing our strategy, rebuilding our deterrence, and reequipping for the future.

The damage to what remains of Israel’s global standing is severe—and Israelis don’t seem to grasp this. We may be losing, or may have already lost, an entire generation of young people around the world. Social media platforms like TikTok certainly play a role, amplifying narratives and images at lightning speed. But much of the backlash stems from our own conduct.

Too often, Israelis attribute this erosion of support to a failure of hasbara—our public relations efforts. But effective messaging only works when the underlying reality is defensible. One of the most troubling shortcomings of successive Israeli governments—this one in particular—is the apparent absence of anyone in the room, whether in the military or at the cabinet table, willing to ask basic but vital questions when operational decisions are made: “Even if this is legal—even if the lawyers deem it consistent with the laws of war—what will it cost us in the court of global public opinion?” “How many more young voters in the U.S., the U.K., and elsewhere will turn against us because of this single decision?” I fear these questions are no longer being asked—if they ever were.

We must end the war—not only to secure the release of our hostages—that is obvious—but to stop the growing cascade of errors and unintended deaths. To stop the relentless stream of images from Gaza, and halt the rising toll.

Each morning, I hear the numbers from the day before, from the Nightly News in the U.S, which I listen to as a podcast. Fifty-three killed. Sixty-eight. One hundred twenty-three. Yes, some are likely Hamas terrorists. But many are civilians. The reports often specify: 23 women and children. 12 children. And so on. The effect is cumulative.

Here in Israel, our primary focus is rightly on bringing the hostages home, easing the burden on exhausted soldiers, and preventing further IDF casualties. But there is another dimension: every day this war continues, we inflict lasting damage on our international standing and future alliances—and that’s without even touching on the moral cost.

This evening, the IDF spokesperson held a press conference —but said little beyond the familiar. Israel is deepening its military operations in Gaza. Fighting continues above ground and below. In other words, more of the same.

Over the past two days, the IDF suffered additional casualties. Thankfully, there were no fatalities—however, several soldiers were seriously wounded.

SYRIA

The full implications of yesterday’s events on the Syrian border remain difficult to assess. Most, if not all, of the Israeli Druze who crossed into Syria have reportedly returned. In response, the IDF is currently working to repair and reinforce the border fence to prevent further breaches.

Overnight, Syrian President Ahmed al-Sharaa delivered a speech blaming Israel—referred to pointedly as the “Zionist entity”—for sowing conflict in the region. However, to this moment, the precise sequence of events is still uncertain. Was it merely a local clash between Bedouins and Druze that spiraled out of control, with Syrian government forces—initially sent to mediate—ultimately turning violent? Or was there a premeditated plan behind the escalation? So far, no one has provided definitive answers. There is also growing skepticism over whether any agreement with the current Syrian regime is even feasible—regardless of intentions on either side.

Yesterday was, by most accounts, not a good day. The one reassuring development was Israel’s decision—belated but decisive—to intervene on behalf of the Druze, just as they have stood by Israel in times of need.

Prime Minister Netanyahu declared that the area between Damascus and the Israeli border must be demilitarized and free of Syrian troops. Whether that demand can be enforced is far from certain.

POLITICS

Ministers from the Shas party formally submitted their letters of resignation today. While some hope the departure of the ultra-Orthodox parties as a potential turning point toward the collapse of the current government, the resignation of Shas ministers has drawn a more complex response.

Despite political differences, several Shas ministers—particularly those overseeing the Interior, Health, and Social Affairs portfolios—earned public appreciation for their competence and efficiency. They managed their ministries with discipline, implemented substantive reforms, and were notably more responsive than many of their counterparts in Likud and other coalition factions. Their departure leaves a palpable void in the government. Whether or not their political agenda was shared, their professionalism will be missed.

STRIKES, SANCTIONS and STALEMATE WITH IRAN

NBC News reported that that revised U.S. intelligence assessments indicate the recent American strike on Iran’s Fordow nuclear facility was highly effective, while parallel attacks on Isfahan and Natanz achieved more limited results. Still, the picture remains murky, with conflicting accounts and uncertainty over the sources and motivations behind the leaks.

What is increasingly evident, however, is the urgent need for a diplomatic resolution. Yet the Trump administration shows little inclination to pursue negotiations at this stage. Officials are reportedly convinced that Tehran remains unwilling to compromise on uranium enrichment—the central obstacle in any potential agreement.

Instead, Washington appears to be doubling down on a strategy of pressure: renewed military threats, tightened economic sanctions, and the possible reactivation of the JCPOA’s “snapback” sanctions mechanism, a holdover from the original 2015 nuclear deal.

ISRAEL TO BOOST DEFENSE BUDGET BY NIS 42B

After a disagreement between the Defense and Finance ministries, the government has agreed to increase Israel’s defense budget by NIS 42 billion ($12.5 billion) for 2025 and 2026. In a joint statement, the ministries said the additional funds will allow the Defense Ministry to “advance urgent and essential procurement deals critical to national security.”

ONE SHOP CLOSES, AS OWNER HEADS HOME

A more personal story unfolded this week. Yesterday, we noticed that our neighborhood wine shop had closed its doors. Today, I saw the owner—with whom I am acquainted—diligently packing up his inventory and loading it into his truck. When I asked why he was leaving, he smiled and simply said it was time to return home. He lives in Beit Hillel, a moshav on the Lebanese border, and after nearly two years after being evacuated, he’s leaving Tel Aviv to rejoin his family.

IDF PURCHASES ADDITIONAL WEAPONS SYSTEMS

The Israeli Ministry of Defense has signed a major procurement contract with Israel Aerospace Industries (IAI) for a significant quantity of Arrow 3 missiles, designed to intercept ballistic missiles outside Earth's atmosphere. While the ministry declined to disclose total cost—describing the deal only as involving a “substantial amount” of missiles—each Arrow 3 missile is estimated to cost between $2 million and $3 million.

This purchase comes amid ongoing tensions between the Defense and Finance Ministries over military funding, with the Defense Ministry claiming that critical security deals are being blocked due to budgetary disputes. This latest order follows a similar multi-billion shekel contract signed late last year and reflects the urgent need to replenish Israel's missile defense stockpiles in the wake of the recent conflict with Iran.

The necessity for expanded missile production became evident during the 12-day war with Iran, when approximately 550 ballistic missiles were launched toward Israel. Of those, 86% were successfully intercepted by defense systems, including the Arrow 3. However, the 14% that penetrated the missile defense network caused significant damage—killing 30 civilians and striking critical infrastructure, including the Haifa oil refinery, where three workers were killed and power station operations were severely disrupted.

According to foreign reports, some Iranian missiles also struck IDF bases, though military officials maintain that operational continuity was preserved. This combat experience has highlighted the severity of the ballistic missile threat and the imperative for significantly expanded production capacity.

Looking ahead, Israel Aerospace Industries (IAI) is accelerating development of the next-generation Arrow-4 system, designed to counter more advanced threats—including hypersonic missiles that travel at more than five times the speed of sound—with testing expected in the coming months.

The defense establishment's broader rearmament push also includes a recent 67 million shekel order for thousands of new Negev 7 and Negev UX light machine guns from Israel Weapon Industries. The Negev UX, developed based on lessons from combat in Gaza and Lebanon, weighs just 6.8 kilograms—nearly half the weight of older MAG machine guns—and fires 600-800 rounds per minute. Its lighter weight and integrated mounting rails make it significantly more maneuverable in combat and adaptable for specialized accessories.

BUSINESS

Nipendo

After Integrating Nipendo Technology, Amex Shuts Down Israeli R&D Operations

American Express has officially closed its Amex Israel operations, effectively ending its presence in the country less than two years after acquiring local startup Nipendo. The acquisition, estimated at $15–20 million in 2023, was aimed at integrating Nipendo’s technology to enhance American Express’s business-to-business (B2B) payments capabilities. Nipendo’s platform specializes in automating Procure-to-Pay processes and seamlessly integrating with existing payment systems. Following the full integration of this technology, Amex chose to shutter its Israeli branch, resulting in the layoff of several dozen employees.

Nipendo, headquartered in Netanya and founded in 2008, had employed around 100 people at the time of the acquisition. In February 2024, Top Systems—a Tel Aviv Stock Exchange-listed company—acquired Nipendo’s remaining Israeli operations for $2 million. That acquisition included Nipendo’s business with Israeli clients and their global suppliers, and remains unaffected by the closure of Amex Israel. While American Express retains the intellectual property and technology from the acquisition, its decision to withdraw locally reflects a broader trend of global tech firms consolidating overseas operations following strategic integrations.

Via Technologies

Eyes Wall Street Return with Second IPO Filing

Transportation technology company Via has once again set its sights on Wall Street, filing a confidential prospectus for a potential initial public offering on Wednesday. This marks the second attempt for the Israeli-founded company, which first filed for an IPO in December 2021 before market conditions deteriorated and the public offering window effectively closed. Founded in 2012 by Oren Shoval and Daniel Ramot, Via developed innovative dynamic public transportation route planning technology that adjusts in real-time to traffic conditions and road construction, moving beyond the limitations of fixed transit routes.

The timing of Via's latest IPO filing coincides with signs of recovery in the public markets, as demonstrated by fellow Israeli company eToro's recent successful public debut. Via has raised an impressive $1 billion in total funding, including a $110 million round in February 2023 that valued the company at $3.5 billion, with backing from prominent investors including Israeli funds 83North, Pitango, and ION Crossover Partners. The company streamlined its operations in late 2021 by shutting down its consumer-facing taxi service to focus on its core B2B technology platform, with leadership indicating the company is on track toward profitability and targeting break-even by 2024.

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TRAVEL ACROSS ISRAEL

Beersheva

Today, we head off to the city of Beersheva! Let’s start off with a quick overview of Beersheva’s history…

Beersheva's story begins in the mists of biblical antiquity, where the very name carries the weight of sacred history. In Hebrew, "Be'er Sheva" means "Well of the Oath" or "Well of Seven," referring to the legendary covenant between Abraham and Abimelech, the Philistine king, over water rights—a precious commodity in this arid landscape that remains vital to this day. Archaeological evidence suggests continuous habitation here for over 4,000 years, making it one of the oldest continuously inhabited cities in the world.

The ancient city wasn't just a way-station for nomadic tribes; it was a crucial crossroads where Africa, Asia, and Europe converged through trade routes. During the Byzantine period, Beersheva flourished as a Christian center, with beautiful churches and monasteries dotting the landscape. The city's strategic importance continued through the Islamic conquests, the Crusades, and the Ottoman period, each civilization leaving its mark on this resilient desert outpost.

But perhaps the most dramatic transformation came with the Ottoman Empire's final push to modernize its territories. In 1900, the Ottomans established the modern city of Beersheva as the administrative capital of their southern district, constructing the beautiful old city that visitors can still explore today. The Ottomans built the famous train station, government buildings, and the distinctive mosque that still stands as a testament to their architectural vision.

The British Mandate period brought further development, but it was the establishment of Israel in 1948 that truly transformed Beersheva from a sleepy desert town into a bustling modern city. Designated as the "Capital of the Negev," Beersheva became the launching pad for Israel's ambitious project to "make the desert bloom." Waves of immigrants from across the Jewish diaspora—Holocaust survivors from Europe, refugees from Arab countries, and later immigrants from the Soviet Union and Ethiopia—all contributed to the city's remarkable growth and cultural diversity.

Today, Beersheva stands as Israel's seventh-largest city and the undisputed heart of the Negev Desert. Home to Ben-Gurion University of the Negev, one of Israel's most prestigious institutions of higher learning, the city has evolved into a major center for technology, research, and innovation. With the presence of a major university, leading hospitals, and high-tech companies, Beersheva aspires to the nickname “Israel's Cyber Capital,” attracting brilliant minds from around the world to this once-remote desert outpost.

The city's transformation from ancient crossroads to modern metropolis mirrors the broader Israeli story—a tale of ingenuity, perseverance, and the age-old human drive to create something lasting and beautiful, even in the most challenging environments. Beersheva embodies the pioneering spirit that shaped modern Israel, while honoring its deep historical roots that stretch back to the dawn of recorded history.

Visiting Beersheva…

Beersheva offers visitors a unique opportunity to experience both ancient history and modern innovation in one of the world's most challenging yet beautiful environments. It's a city where the past and future coexist, where traditional Bedouin culture meets cutting-edge technology, and where the timeless desert provides a stunning backdrop for human achievement and adaptation.

Here are Beersheva’s many hidden gems and must-see attractions we can choose from:

Historical Sites and Architecture

The Old City (Ir Atika) … We can begin in Beersheva's charming Old City, a beautifully preserved Ottoman-era neighborhood that feels like stepping back in time. The narrow streets are lined with restored stone buildings that now house galleries, cafes, and boutiques. The architecture tells the story of the city's multicultural heritage, with Ottoman, British Mandate, and early Israeli influences all visible in the stonework and design. We must not miss the old Turkish train station, now converted into a cultural center, which once connected Beersheva to the wider Ottoman Empire.

The Turkish Mosque … Built in 1906 during the Ottoman period, the beautiful Turkish Mosque is one of Beersheva's most striking landmarks. With its elegant minaret and traditional Islamic architecture, it stands as a testament to the city's diverse religious heritage. While no longer functioning as a mosque, the building has been carefully preserved and occasionally hosts cultural events.

Abraham's Well … Whether or not this is the actual biblical well where Abraham made his covenant, visiting this reconstructed site offers a meaningful connection to the ancient stories that put Beersheva on the map. The well area includes exhibits about the city's biblical significance and archaeological findings that illuminate life in ancient times.

Cultural Attractions

Ben-Gurion University Campus … We can also take a stroll through one of Israel's most beautiful university campuses, where modern architecture harmoniously blends with desert landscaping. The campus is home to several excellent museums and galleries, and the student energy brings a youthful vibrancy to the desert city. The university's presence has transformed Beersheva into a major intellectual hub.

Negev Museum of Art … Housed in a beautifully restored Ottoman-era building that once served as the Turkish governor's residence, this museum showcases contemporary Israeli art with a particular focus on artists from the south. The building itself is as much an attraction as the art it contains, with its distinctive architecture reflecting the city's Ottoman heritage.

The Beersheva Theater … This modern cultural center is the heart of the city's performing arts scene, hosting everything from Hebrew theater to international performances. Even if we don't catch a show, the building's architecture and surrounding plaza make for an interesting visit.

Markets & Local Life

The Bedouin Market … Every Thursday, Beersheva comes alive with one of the Middle East's most authentic traditional markets. Bedouin traders from across the Negev bring their goods to sell—everything from traditional handicrafts and spices to camels and goats. This isn't a tourist market, but a genuine working marketplace where we can experience the traditional nomadic culture that has thrived in this region for centuries. The sights, sounds, and aromas create an unforgettable sensory experience.

The Central Market (Shuk) … For a more contemporary market experience, we might explore the bustling central market where locals do their daily shopping. Here we'll find fresh produce, traditional Middle Eastern foods, and a chance to interact with residents from Beersheva's incredibly diverse population.

Natural Areas & Recreation

Park HaBesor … This lovely urban park follows the Besor Stream and provides a green oasis in the desert city. Perfect for walking, picnicking, or simply relaxing under the shade of mature trees, the park demonstrates how thoughtful urban planning can create beautiful public spaces even in arid environments.

The Promenade … The city's main pedestrian thoroughfare is perfect for an evening stroll, lined with cafes, restaurants, and shops. The promenade comes alive in the evenings when residents emerge to enjoy the cooler desert air.

The Railway Museum … Located in the restored Ottoman train station, this museum tells the fascinating story of the railway that connected Beersheva to Damascus and Istanbul. The exhibits include restored train cars and provide insight into how the railroad transformed life in the desert.

Culinary Adventures

Beersheva's diverse population has created a remarkable culinary scene that reflects the city's multicultural character. We can find everything from traditional Bedouin dishes to Ethiopian cuisine, from classic Israeli fare to innovative fusion restaurants run by university students and young professionals.

Local Specialties to Try:

• Traditional Bedouin hospitality with coffee and dates

• Yemenite Jewish cuisine at family-run restaurants

• Ethiopian injera bread and stews

• Modern Israeli cuisine with desert ingredients