Israel

Israel's economy shows mixed signals: aviation is recovering with Wizz Air and Lufthansa resuming flights, but Meta's job cuts and regional supply chain disruptions from the Middle East conflict weigh on activity. The AI defense sector attracts investment, with Airis Labs raising $60 million.

• 5Germany’s Lufthansa group preparing to gradually resume Tel Aviv flights from June 1
• 4Rupee drops most in a month to record low close on spike in gold-linked dollar demand
• 3Meta begins job cuts in Israel as global layoffs in the name of AI mount
• 3Middle East conflict disrupts packaging supplies for Japanese food makers
• 3Israeli AI Breakthrough Could Revolutionize Sleep Apnea Diagnosis

Netanyahu faces multiple diplomatic crises: the UAE denied his claim of a secret visit, the EU condemned Israel over Gaza activist treatment, and Israel is cutting ties with the UN chief over a sexual violence list. The government distanced itself from Minister Ben-Gvir after his flotilla video sparked international outrage.

• 39Netanyahu Claims Secret UAE Visit During Iran War; UAE Denies
• 31Israel and Lebanon extend ceasefire by 45 days
• 27South Korea's president says Israel crossed a line by detaining its citizens
• 21Israel reportedly cutting ties with UN chief Guterres over inclusion on sexual violence list
• 18"Completely Unacceptable": EU Slams Israel Over Gaza Activists' Treatment

Israel expanded military operations in southern Lebanon, capturing Beaufort Castle and striking Beirut, while also intensifying strikes on Gaza with a goal to control 70% of the territory. Hezbollah killed an IDF soldier, and Israel killed a Hamas military chief in Gaza.

• 86Israel captures strategic Beaufort Castle in southern Lebanon
• 72Israel intensifies strikes on Lebanon as Netanyahu vows to crush Hezbollah
• 53Israel kills Hamas military chief in Gaza strike
• 49Netanyahu orders Israeli forces to expand Gaza control to 70% as Lebanon conflict escalates
• 49Israel strikes Beirut suburbs, threatening already shaky ceasefire

Domestic nationalist fervor is high: the Flag March in Jerusalem drew tens of thousands with anti-Arab chants, while Minister Ben-Gvir's video taunting bound flotilla activists triggered international condemnation and internal distancing. The UN added Israeli entities to a sexual violence blacklist, deepening societal polarization.

• 28Israeli minister Ben-Gvir posts video taunting bound flotilla activists, sparking outcry
• 16Nationalist Flag March in Jerusalem Draws Tens of Thousands
• 8Mayor Mamdani boycotts Israel Day Parade in New York
• 7Israeli nationalists chant anti-Arab slogans in Jerusalem Day march
• 5Australian flotilla activists arrive home alleging sexual assault and beatings in Israeli detention