Update from Israel | Special Edition
1,000 Days Since October 7

July 2, 2026

Today marks 1000 days since October 7, 2023, with Israel still at war

• Groundbreaking agreement between Israel and Lebanon, as one soldier falls.
• US and Iran continue diplomatic process after series of military exchanges
• Government of Israel together with Jewish Federations of North America approves $66 million of support for global formal Jewish education

Lebanon

• A platoon commander in the Golani Brigade’s 12th Battalion, IDF Captain David Hazutt, 21, of Ashkelon, was killed on Sunday during operations in southern Lebanon when his unit encountered a Hezbollah operative in the village of Deir Siryan.
• At the end of last week, Israel and Lebanon signed a US-mediated framework agreement in Washington that both sides described as an initial step toward ending months of fighting. The agreement links a gradual Israeli withdrawal from parts of southern Lebanon to the deployment of the Lebanese Armed Forces and the eventual disarmament of Hezbollah. US Secretary of State Marco Rubio described the framework as a path toward "lasting peace and security," while Israeli officials stressed that implementation would be gradual and conditional.
• The agreement is the most significant diplomatic development between Israel and Lebanon in more than four decades. It is the first formal framework between the two countries since the failed 1983 Israel-Lebanon accord and marks the first time Beirut has formally committed itself to a process that would lead to the verified disarmament of Hezbollah and the restoration of state control throughout Lebanese territory.
• Under the framework, Lebanon agreed that only the Lebanese state would have the authority to use force within its borders and committed to the gradual disarmament of all non-state armed groups. Hezbollah is explicitly identified as the primary target of that process. In parallel, the Lebanese Armed Forces would progressively assume responsibility for territories currently controlled by Hezbollah and for areas from which Israeli forces have withdrawn.
• The agreement establishes a phased and conditional process rather than an immediate Israeli withdrawal. Israel would redeploy from designated areas only after disarmament and security benchmarks are verified. Two initial pilot zones will be used to test implementation, while a future security annex is expected to define verification mechanisms, timelines, and additional withdrawal arrangements.
• Prime Minister Benjamin Netanyahu confirmed that Israel would remain in its expanded security zone in southern Lebanon until Hezbollah's military capabilities are dismantled. The framework includes the establishment of a new US-backed Military Coordination Group that would oversee implementation.
• Hezbollah reacted angrily and rejected the agreement outright. Secretary-General Naim Qassem described it as a "surrender" and "null and void," arguing that it legitimizes Israel's continued military presence in southern Lebanon. He vowed that Hezbollah would continue what it describes as "resistance" until Israeli forces leave Lebanese territory.
• Alongside the diplomatic breakthrough, military activity has continued. Israel carried out drone and air strikes in southern Lebanon in recent days, including attacks following Hezbollah activity and security threats. Hezbollah, meanwhile, has continued to reject disarmament and has maintained that “Israeli occupation” justifies ongoing resistance.
• Since June 22, all Home Front Command restrictions have been lifted, and the entire country has returned to full activity.

The Iran Agreement

• The US and Iran spent the past week trying to rescue the diplomatic process after a series of military exchanges threatened, again, to derail the June 17 memorandum of understanding that halted the war and opened a 60-day negotiating period.
• Following Iranian missile and drone attacks on US facilities in Bahrain and Kuwait, and American retaliatory strikes on Iranian targets along the Strait of Hormuz, both sides agreed on June 28-29 to halt further hostilities and return to negotiations. Technical talks are expected to resume in Doha today, with mediators seeking to preserve the framework agreement despite the recent violence.
• The US accused Iran of violating the interim agreement after a commercial vessel was struck near the Strait of Hormuz, while Tehran blamed Washington for escalating the situation through military action. President Donald Trump warned that the United States would "militarily complete the job" if Iran failed to honor the agreement, while Iranian officials threatened further responses if attacked again. Despite the statements, both sides ultimately agreed to stand down and continue discussions on navigation, maritime security, and implementation of the memorandum.
• American officials portray the negotiations as having made tangible progress. Vice President JD Vance said the first round of talks in Switzerland had been a "very good day" and announced that Iran had agreed to discuss the return of international nuclear inspectors. US negotiators reported movement on mechanisms for monitoring the ceasefire, sanctions discussions, and the reopening of shipping routes. Washington has also highlighted the creation of direct communication channels designed to prevent military misunderstandings in the Gulf and reduce the risk of accidental escalation.
• Iranian officials have been more cautious. Foreign Ministry spokesman Esmaeil Baghaei denied that final nuclear negotiations had begun and rejected some US characterizations of the talks. Tehran insisted that implementation of the memorandum must precede broader agreements and has repeatedly emphasized that sanctions relief remains a central issue. Iranian officials have also denied reports of some scheduled technical meetings and have accused unnamed regional countries of supporting military action against Iran during the conflict.
• Israel has continued to express concern about the emerging framework. Israeli officials are not participants in the negotiations and have worried that the agreement leaves fundamental questions unresolved, particularly regarding Iran's nuclear program and Tehran's regional proxies.
• Criticism of the agreement has continued to grow in Washington, particularly among foreign policy hawks who argue that Tehran is receiving sanctions relief and economic incentives without providing permanent guarantees on its nuclear program. Senator Bill Cassidy (R-LA) called the framework “the worst foreign policy blunder in decades,” warning that Iran had learned that threatening to close the Strait of Hormuz could produce concessions. Senator Ted Cruz (R-TX) criticized the prospect of major economic benefits for Tehran, saying that giving billions of dollars to “theocratic lunatics” was a mistake, while Senator Roger Wicker (R-MS), chairman of the Senate Armed Services Committee, warned that the memorandum could “negotiate away” US military gains. Other senior Republicans, including Lindsey Graham (R-SC) and Senate Majority Leader John Thune (R-SD), have demanded more details, congressional review, and answers on compliance, enforcement, and the sequencing of any financial incentives. American military and foreign policy analysts have also warned that recent military exchanges around the Strait of Hormuz exposed the fragility of the negotiations and showed how quickly the process could collapse if either side concludes the other is violating the agreement.

Elections in Israel

• The Knesset this week approved the controversial "Basic Law: Torah Study" in its first reading by a vote of 63-53. The proposed bill, sponsored by Haredi lawmakers, defines Torah study as "a fundamental value in the heritage of the Jewish people and in the State of Israel" and grants it constitutional status through Israel's Basic Law framework. Supporters argue that Torah study is a foundational pillar of Jewish national life and deserves legal recognition alongside other core state values, while opponents contend that the legislation is primarily intended to strengthen protections for yeshiva students who do not serve in the military and to reinforce draft exemptions at a time of ongoing manpower shortages in the IDF. Meanwhile, Haredi parties maintained their boycott of coalition legislation over the last week, and are demanding full passage of the Basic Law and other measures that would protect yeshiva students from military service and limit enforcement actions against draft evaders. The standoff has effectively stalled large parts of the coalition's legislative agenda.
• The vote exposed divisions even within the governing coalition. Prime Minister Benjamin Netanyahu personally arrived in the plenum to support the measure, alongside Shas and United Torah Judaism lawmakers, as well as most Likud and other coalition members. However, several coalition members broke ranks and voted against the bill, including Deputy Foreign Minister Sharren Haskel and MKs Yuli Edelstein and Dan Illouz from Likud, as well as Moshe Solomon of the Religious Zionist Party. Opposition parties voted overwhelmingly against the bill.
• At the political level, Prime Minister Benjamin Netanyahu is attempting to prevent the coalition from collapsing while avoiding concessions that could further alienate other coalition partners and much of the broader public. Recent reports indicate Netanyahu has explored various options to delay a confrontation with the Haredi parties, but leaders of Shas and United Torah Judaism have continued threatening to support dissolving the Knesset if their legislative demands are not advanced.
• Polling continues to show a highly fragmented electorate. Recent surveys indicate that Netanyahu's Likud remains the single largest party, but that neither the current coalition nor the opposition has a clear path to a 61-seat majority. At the same time, former IDF Chief of Staff Gadi Eisenkot has emerged as one of the strongest performers in the campaign, with his Yashar Party climbing rapidly in the polls and, in some surveys, matching or approaching Likud's projected seat total.
• The rise of Eisenkot has reshaped the opposition landscape. While the Bennett-Lapid alliance initially appeared to be the main challenger to Netanyahu, several recent polls show support shifting toward Eisenkot's security-focused, centrist platform. Even so, opposition parties continue to struggle to assemble a stable governing coalition without cooperation from Arab parties.

1,000 Days Since October 7, 2023

• Israel marked 1,000 days since the October 7 attacks this week with ceremonies and memorials, but also demonstrations and renewed criticism of the government's handling of the disaster and its aftermath. Families of hostages and victims held memorial events across the country, while protest groups used the milestone to call for a state commission of inquiry and greater accountability from political and security leaders.
• Since the start of the war, 39,436 people have been wounded in Israel. Since the start of Operation "Roaring Lion" in February, 8,915 casualties have been recorded, including 412 moderate-to-serious injuries and 466 psychological trauma cases.
• No new residential damage requiring evacuations was recorded since June 8. Of approximately 6,300 residents evacuated to hotels during Operation "Roaring Lion," about 1,500 have now moved to alternative housing, while most others have already returned home.
• The Health Ministry reports that since October 7, more than 120 new mental-health clinics have opened, many with help from Jewish Federations and our partners, and approximately 1,180 new therapists recruited to meet rising demand for psychological services.
• Air raid alerts have dropped sharply in recent weeks. After some 2,092 alerts nationwide on June 7-8 during Iranian and Hezbollah attacks, only 45 alerts were activated between June 9-27, mostly due to hostile UAV infiltrations in northern Israel.
• The government approved a new multi-year northern rehabilitation plan for communities within 0-9 km of the Lebanese border for 2026-2030, totaling approximately $1.87 billion. Combined with previous allocations, northern recovery funding now totals approximately $4.44 billion. Additional plans include approximately $1.33 billion for broader development across the northern district and expanded resilience funding for frontline communities.
• International airlines continue to restore service to Israel. Recent returns include Air Europa (June 29), Air France (June 30), and Air Baltic  and ITA Airways (July 1). Airlines scheduled to resume service later this year include Lufthansa (July 10), Air India (July 31), Swiss (August 1), Delta (September 5), United (September 7), British Airways (October 24), Air Canada (October 25), and American Airlines (January 2027).
• Bank of Israel Governor Amir Yaron said the economy remains resilient despite the war, noting that Israel's risk premium has largely returned to pre-war levels and Israeli stock markets compare favorably internationally. Estimated wartime costs for 2023-2026 now stand at approximately $135 billion. Israel's annual inflation rate fell to 1.9%, while the Consumer Price Index declined 0.3% in May. The Central Bureau of Statistics has also revised first-quarter growth downward, showing the economy contracted at an annualized rate of 3.8%, compared to a previous estimate of 3.3%. The shekel weakened slightly during the last week of June, with the representative dollar rate rising 0.7% to 3.00 shekels per dollar as of June 26. Economic activity showed signs of recovery: industrial production rose 29.8% in April after a 17.8% decline in March, while economy-wide revenue increased 9.6% following a 9.5% drop the previous month.
• Read: An Israeli journalist reflects: 1000 Days Since October 7

Other Developments 

• Israel and the United States signed an agreement yesterday establishing the site for a permanent US Embassy compound in Jerusalem. Senior officials from both countries described the move as another step in institutionalizing the American recognition of Jerusalem as Israel's capital. The agreement lays the groundwork for construction of a long-term diplomatic complex, replacing temporary arrangements that have been in place since the Embassy's relocation from Tel Aviv in 2018.
• The Maccabiah Games officially opened in Jerusalem last night after delays caused by the war, bringing thousands of Jewish athletes from dozens of countries to Israel. Organizers presented the event as both an international sporting competition and a demonstration of Jewish solidarity at a time when Israel remains under intense global scrutiny. The opening ceremonies were attended by senior Israeli leaders and featured delegations from across the Jewish world.
• Israeli security authorities announced a series of espionage-related arrests linked to Iran. In separate cases reported over recent days, authorities said individuals living in Israel had been detained on suspicion of gathering information or assisting Iranian intelligence efforts. The announcements reflect continued concern within Israeli security agencies that Tehran is increasingly relying on recruitment inside Israel following recent military and intelligence setbacks.
• Violent crime in Israel's Arab community continued to surge over the past week, with at least five people killed within a span of hours on June 28 in shootings and car bombings in Taibe, Qalansawe, Jaffa, and Holon. The incidents included the killing of a father in a car bombing that also injured his six-year-old son, and multiple suspected assassinations linked to organized crime and family disputes. The latest killings pushed the number of 2026 homicide victims in the Arab sector to approximately 141 by the end of June, with that figure continuing to rise this week. Reports suggest that police have solved only 12% of Arab-sector homicide cases this year, while 2026 has already exceeded the pace of 2025, which itself was the deadliest year on record with 252 victims. Arab community leaders and opposition politicians have accused the government of failing to contain the crime wave, while police argue they lack sufficient tools and prosecutorial support to confront increasingly powerful criminal organizations.
• Prime Minister Netanyahu's corruption trial saw a significant development this week when the three-judge panel overseeing the case again urged prosecutors to consider dropping the bribery charge in Case 4000, the most serious allegation against him. During a Jerusalem District Court hearing on June 29, the judges reiterated a position they first expressed in 2023, stating that they remain unconvinced the bribery count can be proven. The renewed recommendation came after Netanyahu concluded 98 hearing days and lengthy cross-examination, giving added weight to the judges' view that the prosecution has not produced sufficient evidence to sustain the charge. The bribery allegation centers on claims that Netanyahu advanced regulatory decisions benefiting telecommunications executive Shaul Elovitch in exchange for favorable coverage on the Walla news website. Removing the bribery count would not end the trial, as Netanyahu would still face the less-serious fraud and breach-of-trust charges in all three cases against him, but legal observers note that dropping the charge could significantly shorten the proceedings.
• Israel's Ministry of Defense and the Israeli company Rafael successfully completed a new series of Iron Dome tests incorporating lessons from the war, including upgrades designed to improve interception of rockets, cruise missiles, UAVs, and large-volume attacks. The tests also included integrated operational scenarios with the emerging Iron Beam laser-defense system, marking another step toward combining Israel's missile and laser defense capabilities into a unified air-defense network.
• Israel’s Finance Ministry unveiled an immediate support package of approximately $534 million to strengthen the country’s export and high-tech sectors amid the shekel’s sharp appreciation, including about $334 million in fast-track support for early- and growth-stage tech companies, plus additional funding for industrial modernization, exporter support, workforce training, and expanded tax incentives. The package was announced by Finance Minister Bezalel Smotrich and developed with the Israel Innovation Authority to protect Israel’s global competitiveness and support key growth engines.

Jewish Federations

• The Government of Israel this week unanimously approved a new, historic $66 million national initiative to strengthen Jewish education in the Diaspora, with a particular emphasis on North America. The program, led by the Prime Minister's Office and the Ministry of Diaspora Affairs and Combating Antisemitism in partnership with Jewish Federations of North America, aims to increase enrollment in Jewish schools, strengthen Jewish identity, and deepen young Jews' connection to Israel. The initiative will address barriers including tuition costs, geographic accessibility, support for students with learning disabilities, and the development of new educational and digital learning frameworks. Officials described the effort as a strategic response to rising antisemitism and growing concerns over Jewish continuity.
• Jewish Federations Chair of the Board of Trustees Gary Torgow, President & CEO Eric Fingerhut, and other Federation leaders attended the Cabinet meeting at which the plan was approved and welcomed the new partnership. Torgow described the decision as "a historic day for the State of Israel and for Jewish communities around the world," adding that the government's unprecedented commitment, undertaken in partnership with Jewish Federations, recognizes the critical importance of Jewish education in strengthening connections between Israel and world Jewry and "will help ensure the continuity of the Jewish people for generations to come."
• At a Jewish Agency ceremony at Kibbutz Ein HaShlosha attended by Jewish Federations leaders, government officials, and Jewish communal figures from around the world, a major new initiative was launched to build up to 1,000 new homes across 14 communities in the Western Negev. The project is designed not only to rebuild communities devastated by October 7, but to expand them by attracting new families and driving long-term demographic growth in the region. Communities participating include Kfar Aza, Nahal Oz, Kerem Shalom, Kissufim, Nirim, Holit, Nir Yitzhak, and others.
• A slew of Jewish Federations played a prominent role in the launch, with Chair Gary Torgow and President & CEO Eric Fingerhut participating alongside senior Israeli government officials and Jewish Agency leadership. The project is being financed through a combination of government funding, a $330 million credit facility secured by the Jewish Agency, and philanthropic support from Jewish communities worldwide. Speaking at the ceremony, Jewish Agency leaders described the initiative as marking a transition “from recovery to renewal,” emphasizing that the goal is not merely to replace what was lost on October 7, but to secure the long-term future and growth of Israel’s Western Negev.

For Further Reading

• Analysis of the Israel–Lebanon Framework Agreement: Does It Address Israel’s “End Game”?
• When Black Coats Meet Blue Uniforms
•  I Made the Case for Israel at Oxford. Here's What I Said
• The Architecture of Turkey’s Anti-Americanism

For more information, please contact: Jewish Federations of North America’s Dani Wassner [email protected]. Subscribe to this weekly update here.