Plus, Egypt ‘humiliated’ after Hamas causes renewed ceasefire talks to collapse
March 27, 2025 09:35ByNathan Jeffay, In Israel
This story first appeared as today’s Israel briefing newsletter. You can sign up to receive it daily here.
Israel will seize territory in Gaza if Hamas fails to release the hostages, Prime Minister Benjamin Netanyahu told the Knesset yesterday. He declared: “The pressure we will apply will become more and more powerful. That includes seizing territory, and that includes other things I will not detail here.” He did not explain what “seizing” territory would look like in practical terms.
Defence Minister Israel Katz has made a similar claim in a video addressing Gaza’s residents. He argued that Hamas is putting them at risk and said: “If Hamas continues with its intransigence, it will pay heavy prices that get higher and higher through the taking of territory and taking out militants and terror infrastructure until its complete surrender.” He called on the public to demand the removal of Hamas and the release of hostages.
There was more rocket fire from Gaza to Israel yesterday. Soon afterwards, the IDF struck a building in Gaza it said had been used to fire the projectiles. It also hit two nearby launch sites. Last week, the military struck more than 430 Hamas targets in Gaza using fighter jets, drones and helicopters, it announced yesterday.
Elsewhere, a British-Israeli rabbi’s fight for accountability from the Palestinian Authority after terrorists killed his wife and two daughters reached a milestone yesterday. Rabbi Leo Dee, bereaved in 2023, succeeded in persuading a Jerusalem court to freeze NIS 50 million (more than £10 million) in PA tax funds. His argument is that the PA’s policy of rewarding terrorists with its “pay-for-slay” scheme creates conditions ripe for terror. The court freeze secures potential compensation if Dee wins. The case is being pursued through the legal NGO Shurat HaDin, citing a Supreme Court ruling that permits civil suits against the PA for terror-related damages.
Meanwhile, high-level emergency meetings have taken place in Jerusalem after the latest talks to renew the Gaza ceasefire and secure hostage releases began to crumble. Israeli sources say Egypt, which had been leading the effort, feels “humiliated” after Hamas failed to follow through on commitments, despite Cairo’s public optimism.
Israel’s foreign minister said yesterday that the government is still interested in a deal: “But we will not wait forever.” He claimed that Hamas refuses to release hostages or demilitarise Gaza, forcing renewed fighting. In a conversation with Sweden’s foreign minister, he quoted Golda Meir, adding: “If the Arabs put down their weapons, there will be no more war. But if Israel puts down its weapons, there will be no more Israel.”
On the topic of Gaza’s future, a pilot programme will relocate 100 Palestinians from Gaza to Indonesia for work, according to Hebrew media. The Israeli-headed plan focusses on construction jobs. If successful, thousands more may be offered the same option, though Indonesia would have to approve. The plan is being coordinated through COGAT, with a new “migration administration” expected to take charge if the pilot expands.
And an official from the Palestinian Fatah party has urged its rival, Hamas, to step aside after public protests in Gaza. The Fatah leader called on Hamas to relinquish control of the Strip and “listen to the voice of the people.” Hamas responded by framing the protests as Israeli manipulation, not genuine opposition.
Back in Israel, a fake “Qatari embassy” was set up outside the Knesset yesterday by protesters mocking the Prime Minister’s Office, which is embroiled in a scandal over alleged links between employees and Qatar. Men in white robes waved money and played Arabic music. One demonstrator used strings to control a man wearing a Netanyahu mask, like a puppet. “Welcome to the ‘Qatari embassy’ in Jerusalem,” he announced.
And a senior IDF commander resigned yesterday over his unit’s failures on October 7. Haim Cohen, head of the IDF’s Gaza Division Northern Brigade, wrote in his resignation letter: “The results show, I failed.” Cohen remained in the division’s war room during the Hamas attack. His counterpart in the Southern Brigade was killed in combat. A replacement had already been appointed.
Then, this morning, the most dramatic legislation in Israel’s legal overhaul passed the Knesset. The opposition, realising the law would pass, boycotted the vote to symbolise its strong objection, and characterised the law as an attack on Israeli democracy.
The law is part of the package of legal changes that caused mass protests in Israel before the war started. It gives politicians more control – and the professional legal establishment less – over judicial appointments.
Supporters argue unelected institutions hold too much power and this is a good fix. Others see it as an unravelling of Israeli democracy. The opposition released a joint statement claiming that the law was enacted to “ensure that judges become subject to the will of politicians”. Yet Yitzhak Kroizer, a politician with the Otzma Yehudit party, argued that the law is positive and represents “a dawn of change”.
Finally, the conspiracy theory voiced by Prime Minister Benjamin Netanyahu – that an unelected “deep state” is pulling the strings in Israel to target the right – is gaining traction. Yesterday, three far-right politicians said they will not cooperate with a police investigation into a break-in at an IDF base, claiming the probe is politically motivated. The incident took place during a riot demanding the release of soldiers accused of abusing a Palestinian detainee. “The deep state wants us in jail. Full stop,” said former MK Zvi Sukkot. MK Nissim Vaturi claimed it was instigated by “the deep-state prosecution.” Heritage Minister Amichai Eliyahu warned officials: “You will not drag us off like they did in the Soviet Union.”
Netanyahu repeated his claim that Israel has a “deep state” biased against the right. He raised the theme yesterday while addressing claims from anti-government protesters that Israeli democracy is under threat. “Democracy is not in danger; the bureaucracy is in danger,” he said, responding to criticism over the judicial overhaul and other government moves. “The deep state is in danger,” Netanyahu said. He claimed a small group of officials were clinging to power and blocking elected policy. “Democracy,” he added, “means rule of the people—not of officials, former leaders, or media outlets.”