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Israel's government, led by Netanyahu, is pursuing a hardline military and political strategy in Gaza while deepening alignment with Trump, creating friction with the US and international partners and casting a shadow over the economy and society.
January 2026
Week of Jan 26, compared to 12-week average
No deviations this week.All weeks this month are quiet.
Top sources covering Israel
The economy is experiencing a stark duality between major foreign investment and significant operational disruptions. Apple's $1.6 billion acquisition of Israeli AI company Q.ai demonstrates high-value confidence in the tech sector. However, this is offset by repeated flight cancellations to Israel by major carriers like Air France, KLM, and Lufthansa due to regional security fears.
Politics is defined by a decisive pivot towards Donald Trump and overt confrontation with US-led diplomatic initiatives. Netanyahu agreed to join Trump's 'Board of Peace' initiative, signaling a major alignment. Concurrently, Israel formally objected to and blocked a US-backed committee meant to oversee Gaza, rejecting international governance plans.
Security operations remain intensely focused on Gaza with a declared shift to a new phase. Israeli airstrikes in Gaza killed dozens as ceasefire talks continued. The government announced the recovery of the last hostage's remains and outlined the next phase of the war, vowing to disarm Hamas.
Society is marked by deep internal divisions and external condemnation over the treatment of Palestinians. Ultra-Orthodox Jews protested the military draft in Jerusalem, resulting in one death. Simultaneously, reports indicate Israel aims to ensure more Palestinians leave Gaza than return, and the UN accused Israel of creating apartheid-like conditions in the West Bank.
