Israel Latest: Netanyahu Vows Retaliation; Saudi Deal on Hold

Saudi Arabia has paused diplomacy to normalize ties with Israel after the flareup in violence between Israeli forces and Hamas, as Prime Minister Benjamin Netanyahu said his government is prepared to use “unprecedented” force against the group after last weekend’s deadly assault.

(Bloomberg) — Saudi Arabia has paused diplomacy to normalize ties with Israel after the flareup in violence between Israeli forces and Hamas, as Prime Minister Benjamin Netanyahu said his government is prepared to use “unprecedented” force against the group after last weekend’s deadly assault. 

Palestinians in northern Gaza flooded streets in cars and on foot, heading south after Israel gave residents 24 hours to evacuate amid continued bombing and fears of a looming ground invasion. The United Nations warned of a disaster and said it would be impossible to move the million or so inhabitants of north Gaza to the south, as demanded by Israeli authorities. The US said it’s sending humanitarian aid and seeking to negotiate ‘safe zones’ in Gaza.

Hamas, designated a terrorist group by the US and the European Union, called for a “Day of Rage” across the Muslim world and mass protests Friday against Israel, which the group attacked last weekend, killing 1,300. More than 1,500 people have been killed in Gaza in retaliatory airstrikes.

For more on the Israel-Hamas war, click here.

(All time stamps are Israeli time)

Moody’s Skips Israel Credit Rating Notice (12:20 a.m.)

Moody’s has left Israel’s sovereign credit rating unchanged at A1 with a stable outlook, after it decided to skip Friday’s publication date and not issue a credit notice as planned, Israel’s Finance Ministry said in an announcement.

The next scheduled date for the publication of a credit rating notice by Moody’s on Israel is in six months. Earlier this week, Moody’s issued a note saying that the resilience of Israel’s debt issuers is at stake if a conflict stretches on, impairing economic activity and policy making

Biden Says US Will ‘Surge’ Humanitarian Aid to Gaza (10:32 p.m.)

President Joe Biden said the US is coordinating with Arab countries and the United Nations to surge humanitarian aid to Gaza as Israel has warned Palestinians to flee ahead of an expected ground attack.

Biden said aides had been communicating directly with the governments of Israel, Egypt, Jordan, among others, to “surge support” and humanitarian assistance. Israel’s military toward residents in northern Gaza – estimated to be over 1 million people – to evacuate into the territory’s south.

“The overwhelming majority of Palestinians had nothing to do with Hamas, and Hamas’s appalling attacks, and they’re suffering as a result as well,” Biden said.

Netanyahu Says Israel Ready to Use ‘Unprecedented’ Force (10:28 p.m.)

Prime Minister Netanyahu said Israelis understand they’re “fighting for our home” after last weekend’s attack and vowed to use “unprecedented” force against Hamas.

“This is just the beginning,” he said in a brief televised speech as the country gears up for what’s widely expected to be a ground invasion of Gaza. “Our enemies have only begun to pay the price.”

Netanyahu said Israel was receiving support from President Biden and other leaders around the world, including additional ammunition and weapons.

Foreigners May Be Allowed Brief Window to Leave Gaza, Canada Says (10:05 p.m.)

Foreign citizens in Gaza may have a brief window to leave through the Rafah border crossing into Egypt on Saturday, a Canadian government official said in Ottawa. 

Julie Sunday, a foreign affairs department official, told reporters there is a potential departure window between 12 p.m. and 5 p.m. local time, and said the Canadian government is working with Israel and Egypt to get individuals approved to leave.

She emphasized it is not yet guaranteed the crossing will be open, and said people should not go there until they are told they have clearance. Canadian officials said about 150 people in Gaza have registered with the government, though some are of mixed families.

Fatal French Stabbing Linked to Israel-Hamas War by Top Official (9:40 p.m.)

The assailant who fatally stabbed a teacher in France in what President Emmanuel Macron called an Islamist terror attack was possibly motivated by the war between Israel and Hamas, a top security official said.

“Based on our intelligence, on our information, there’s probably a link between what happened in the Middle East and the decision to act,” Interior Minister Gerald Darmanin told broadcaster TF1 on Friday. 

France has stepped up security nationwide with more soldiers dispatched to help police, although there’s “no specific threat,” he said.

White House Meets Lawmakers On Aid Package for Israel, Ukraine (8:05 p.m.)

Officials are meeting Friday with lawmakers about their request — expected next week — for a supplemental aid package to arm Israel and Ukraine, the White House said Friday.

The fate of the funding package remains unclear as congressional Republicans remain split over whether to continue providing support to Ukraine – and who to name as the lower chamber’s leader after the ouster of former House Speaker Kevin McCarthy.

Saudi Puts Normalization Talks With Israel on Hold in Blow to Biden (8:02 p.m.)

Saudi Arabia has decided to pause diplomacy to normalize ties with Israel given the flareup in violence between Israeli forces and Hamas, people familiar with the matter said, in a major blow to President Joe Biden’s ambitions for the Middle East.

Saudi officials communicated Riyadh’s position to the US in recent days, said the people, who asked not to be identified discussing private communications. They described the move as a pause and not as an end to the diplomacy.

Suspending the talks runs counter to the Biden administration’s push to proceed with normalization talks even in the wake of the latest violence. Secretary of State Antony Blinken is traveling to Saudi Arabia this weekend for talks.

Too Early to Say Whether Hostage-Release Efforts Will Succeed, Qatari Says (7:15 p.m.)

It’s too early to say yet whether diplomatic efforts to win the release of Israeli hostages held by Hamas will be successful, according to Qatar, a country widely seen as a likely potential mediator.

“The progress will be determined in the next few days, hopefully, and we will see if there will be a positive prospect for that,” Prime Minister Sheikh Mohammed Bin Abdulrahman Al Thani told a press conference after talks with US Secretary of State Antony Blinken. “But we are doing our best, our partners are doing their best in order to get them released safely.”

Israel Strikes Kill Reporter, Wound 2 Others on Lebanon Border (6:49 pm)

Israel airstrikes on the southern Lebanese village of Alma Al-Shaab killed a reporter and wounded two others, Lebanon’s state-run National News Agency said.

Reuters said videographer Issam Abdallah was killed while providing a live video signal in southern Lebanon and said it was seeking more information.

A reporter and a photographer with Al-Jazeera were wounded when Israel fire hit their car, the Arabic news network said.

Israel Army Carries Out Local Raids in Gaza (7:21)

Israel army said it has carried out local raids in Gaza in the past 24 hours in an effort to locate hostages and eliminate threats.

In a statement, Israel Defense Forces said they searched and collected evidence that would assist in the effort to locate hostages. Soldiers also thwarted cells and infrastructure in the area.

Biden Holds Call With Families of Missing Americans (7:16 p.m.)

President Biden called family members of the 14 American citizens still unaccounted for following the Hamas-led attack over the weekend in Israel.

The president was joined by top national security aides, including Roger Carstens, who serves as a special envoy responsible coordinating the US response to Americans being held hostage or unjustly detained overseas. The attacks killed 27 American citizens, according to the US.

Hezbollah Says Launched Attack on Israel Army Posts Near Border (6:44pm)

The Iran-backed Hezbollah group attacked four Israel military posts near the border with Lebanon in what it said was retaliation for strikes on several southern Lebanese towns, the group’s Al-Manar TV reported. 

Israel Defense Forces said earlier they’d responded to incoming fire in the area.

Hezbollah said earlier Friday that it’s prepared to act against Israel over its war in Gaza after its sponsor, Iran, warned the continued blockade of the Palestinian enclave could open up a new front in the conflict.

“We are fully prepared — when the time comes — for any action that we will carry out,” Hezbollah’s Deputy Secretary General Sheikh Naim Qasem said, according to the group’s Al Manar TV station.

Israeli Poll Shows Netanyahu’s Popularity Drops as Gantz Surges (6:00 p.m.)

Prime Minister Benjamin Netanyahu’s popularity has dropped while that of Benny Gantz, a former general who’s now part of Israel’s “war cabinet,” has surged, according to a poll conducted by Israeli research institutes.

The survey, published by Maariv newspaper on Friday and carried out by Lazar Research in partnership with Panel4All, showed opposition parties would win a crushing majority against Netanyahu’s coalition if elections were held now.

Of the roughly 600 people surveyed, 48% said Gantz was their preferred prime minister, while 29% chose Netanyahu.

World Bank to Continue Projects in Gaza, Official Says (5:45 p.m.)

The World Bank is monitoring the situation and has no intention for now to suspend its programs and financing for Palestine, the lender’s vice president for the MENA region Ferid Belhaj told Bloomberg in Marrakech.

World Bank projects in Gaza pertain mostly to energy, water and sanitation and are funded out of the $80 million a year the lender grants the Palestinian Authority.

Iran Diplomat Meets Hamas, Islamic Jihad in Beirut (5:13 p.m.)

Iranian Foreign Minister Hossein Amirabdollahian discussed the situation in Gaza with senior officials from Palestinian militant groups Hamas and Islamic Jihad in a meeting in Beirut, according to a statement.

The visits followed an earlier meeting with the leader of Hezbollah, as Iran tries to rally regional support for Hamas’s attacks while denying involvement in them.

Amirabdollahian said Iran’s “diplomatic efforts” to end Israeli “war crimes” in Gaza would continue.

Explosion at Israeli Northern Border Prompts Artillery Fire Into Lebanon (4:58 p.m.)

An explosion on the perimeter fence near the Israeli kibbutz of Hanita on the northern border caused limited damage, and Israel responded with artillery fire toward the source, the Israeli army said. There was also an alert that the community was infiltrated and troops are searching the area.

Palestinians Flee South After Evacuation Order (4:56 pm)

Previously deserted streets of Gaza City were flooded with Palestinians fleeing southward after Israel gave them 24 hours to evacuate this morning. The scale of the evacuation order—which covers an area holding half of Gaza’s population—and of the flight are unprecedented. 

Still, many residents remain in the north, fearing the journey under bombardment and saying they have nowhere to go. Hamas has asked people to stay put, saying the order by Israel is misinformation. 

JP Morgan’s Dimon Warns on Geopolitical Risks (4:30 p.m.)

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon warned of serious geopolitical risks amid expectations Israel will make a ground assault on Gaza.

“This may be the most dangerous time the world has seen in decades,” the CEO of the biggest US bank said in its third-quarter earnings statement. “The war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships.”

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