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Update from Israel

September 17, 2026

Prepared by and sent from Jewish Federations of North America's Israel Office 

Jewish Federations’ weekly Israel update returns following a summer hiatus, with a catch-up of recent events, and latest developments.

  • Fighting with Iran, Gaza, Lebanon remains on a “slow burner.”
  • Houthis make considerable gains
  • No front-runner in sight with six weeks until Israeli elections.

Upcoming Jewish Federations Webinars

Christians and the Jewish State: An Ambassador’s View
Wednesday, September 23 at 12 p.m. ET
Join Ambassador George Deek, Israel’s first Special Envoy to the Christian World, for a timely discussion of his personal story and the opportunities and challenges facing Christian communities in Israel today. Register here.

Join us for two more webinars in our Israeli elections series, featuring political experts Miri Eisin and Haviv Rettig Gur: “One Week Until Israel’s Elections” on October 19 and “24 Hours After the Results: What Do We Do Now?” on October 28. Register here. For background on the Israeli election system, read our explainer and watch our new video, designed for a Federation audience.

Iran

  • Over the summer, the conflict with Iran has shifted from repeated large-scale US strikes and Iranian attacks across the region to a lower-intensity but unresolved confrontation centered on the Strait of Hormuz, economic pressure and occasional military exchanges. Israel has remained outside the latest round of direct fighting, with Iran continuing to avoid firing at the Jewish state, while Israeli officials closely monitor Iran’s nuclear activity, missile capabilities and efforts to rebuild military infrastructure damaged earlier in the war.
  • US President Donald Trump said yesterday that Iran wants an agreement and that he hopes the war is “toward the end.” However, repeated recent attempts at diplomacy have yet to produce a long-term arrangement. Trump is expected to meet leaders or foreign ministers from Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman on the sidelines of the UN General Assembly next week to discuss the war and a possible postwar strategy.
  • The Strait of Hormuz remains the conflict’s central military and economic flashpoint. Only three vessels passed through the waterway yesterday, down from 12 the previous day and a recent ten-day average of approximately 17. US officials maintain that many additional ships are traveling with their tracking systems switched off under American military protection, and say approximately 40 vessels and 14 million barrels of oil are now passing through the Strait each day.
  • A new military confrontation took place in the Strait on Monday when Iranian boats attempted to seize a US Navy unmanned surface vessel. US officials said an American drone fired two missiles at the boats, destroying both and killing most of those aboard; Iran described the vessels as civilian fishing boats and said several fishermen were missing. US Central Command subsequently confirmed that Iranian boats had attempted to take control of the unmanned vessel and that it remained under American control.
  • Iran also fired five missiles at Iranian Kurdish opposition positions in Iraq on Monday, followed by a drone attack against another Iranian Kurdish group’s base on Tuesday. Kurdish authorities reported property damage but no casualties. At the same time, there has been a significant pause in Iranian attacks against regional governments. Iran has not launched a confirmed ballistic missile at another state for seven consecutive days, the longest such interval since the latest round of hostilities began in late August. The pause has continued despite the US destruction of the two Iranian boats, although Iranian officials have issued renewed threats and warned that further action could follow.
  • Iran’s nuclear program remains a central concern. Speaking at the International Atomic Energy Agency’s annual conference in Vienna this week, the head of Israel’s Atomic Energy Commission said Israel had acted to ensure its survival and “will do it again if needed.” He said Iran possesses more than nine tons of nuclear material outside effective international safeguards, including approximately 440 kilograms of uranium enriched to 60%, enough for more than ten nuclear weapons if enriched further.
  • A newly released US Defense Department inspector-general report provided the most detailed accounting to date of the costs of the conflict. It found that US military operations against Iran cost approximately $33.4 billion through the end of June, including $22.3 billion in expended munitions and $3.7 billion in damaged or destroyed equipment.
  • In an important development for Israel, the military chiefs of Israel, Saudi Arabia, the UAE, Bahrain, Kuwait, Qatar, Jordan and Egypt met privately with the commander of US Central Command in Germany last week. The discussions included protection of shipping through the Strait of Hormuz, regional air defense and the escalating Houthi campaign against Saudi Arabia. Israel and Saudi Arabia are also reportedly discussing possible Israeli intelligence and surveillance assistance against the Houthis, although Israeli officials have not indicated that the IDF would directly join Saudi offensive operations in Yemen.

Houthis

  • Over the summer, the Houthi threat has evolved from sporadic Red Sea attacks into a broader regional challenge, with the group increasingly targeting Saudi Arabia, energy infrastructure and major shipping routes while benefiting from Iran's wider confrontation with the United States.
  • The campaign against Saudi Arabia intensified sharply this week. Saudi forces reported intercepting drones and missiles targeting cities and infrastructure across the Kingdom, while the Houthis claimed additional attacks against Saudi military and energy targets. Saudi aircraft responded with dozens of strikes across Yemen.
  • One Houthi drone was intercepted near Mecca, prompting condemnation across the Arab and Muslim world. Saudi authorities said the Houthi-launched drone was headed toward the vicinity of Islam's holiest city, while the Houthis denied targeting Mecca and insisted they were aiming at military and energy facilities.
  • The Houthis have also expanded their ability to disrupt global shipping by consolidating control over key territory along the Bab el-Mandeb Strait at the southern entrance to the Red Sea. Together with ongoing threats in the Strait of Hormuz, this has created the possibility of simultaneous pressure on the two most important maritime chokepoints connecting Europe, Asia and the Middle East, raising concerns over global trade, energy supplies and shipping costs.
  • The Houthis remain a growing concern for Israel despite the absence of recent direct attacks on the Jewish state. Regional military cooperation has expanded in response, and reports indicate that Israel and Saudi Arabia are discussing possible intelligence and surveillance cooperation related to the Houthi threat.

Other Fronts

  • Over the summer, the Gaza ceasefire has largely held despite sporadic Israeli operations, while attention has increasingly shifted toward questions of Hamas's future, post-war governance, reconstruction and security arrangements. Israel still controls over half of the Strip, with the other areas remaining under nominal Hamas control.
  • Israel this week eliminated the commander of Hamas's Rafah Brigade, one of the most senior remaining operational commanders in the organization. The strike comes as Israel continues intelligence-driven operations against efforts by Hamas to rebuild its military infrastructure despite the ceasefire. In recent weeks, Israel has also targeted numerous terrorists who took part in the October 7 attacks, as well as those who held hostages in Gaza.
  • The search for a post-Hamas governance model continues. Regional and international actors remain engaged in discussions over reconstruction, humanitarian arrangements and security mechanisms, but no consensus has yet emerged on who will ultimately govern Gaza or how Hamas can be disarmed and removed from power without creating a broader vacuum.
  • In the West Bank, Israeli security forces continued counterterrorism operations across northern Samaria and other areas, carrying out arrests and raids targeting terrorist infrastructure. Security officials remain concerned about attempts by Hamas and other groups to exploit the relative quiet in Gaza to strengthen networks in Judea and Samaria.
  • Over the past two weeks, Israel has faced growing international pressure over the West Bank. Britain, Canada and France announced measures restricting trade with Israeli settlements, while the UK accused Israel of failing to adequately address settler violence. Israel responded angrily, with senior ministers calling the measures politically motivated, and Israel closing down the UK’s consulate in Jerusalem.
  • The Palestinian Authority's financial crisis continues to deepen amid ongoing disputes over tax revenues and broader fiscal pressures. Israeli officials have expressed concern that prolonged economic instability could further weaken the PA at a time when international actors increasingly view it as one of the few possible alternatives to Hamas in a future Gaza arrangement.
  • Hezbollah remains weakened but tensions persist along the northern border. While large-scale fighting has not resumed, the IDF has continued operations in southern Lebanon against Hezbollah infrastructure and weapons caches. Last week, the IDF demolished a large underground Hezbollah command-and-control complex in the Beaufort Ridge area of southern Lebanon. The facility served as a major Hezbollah operational headquarters embedded deep inside the mountain and was part of Hezbollah's broader underground military network built over many years along the border. Israel, Lebanon, and international mediators are continuing efforts to implement understandings reached earlier this year, including expanding Lebanese Army control in parts of the south.
  • The Prime Minister’s Office announced that, as part of the ongoing talks with Lebanon, Israel is advancing efforts to locate and repatriate the remains of leaders of the Lebanese Jewish community who were abducted and murdered by terrorist organizations in the 1980s. Officials said that numerous Israeli and Lebanese efforts have been undertaken in recent months to locate the remains. As part of the process, last week Israel released five Lebanese civilians who had been detained in southern Lebanon after determining they were not involved in terrorism.

Israeli Elections

  • Over the summer, the election campaign has steadily intensified ahead of Israel's October 27 election. Party lists have now been submitted and finalized. This means that no further party mergers or changes to candidate lists can now occur. Most polling continues to show a fragmented Knesset with no obvious path to a 61-seat majority for either major bloc (see below).
  • While Prime Minister Benjamin Netanyahu retains significant popularity, former IDF Chief of Staff Gadi Eisenkot's Yashar party continues to perform strongly in most public polls and has established itself as the largest challenger to both Likud and the ruling coalition. As a result, much political discussion now centers not only on party size, but on which parties might be willing to sit with Eisenkot after the election and under what conditions.
  • The latest Channel 12 - Midgam poll conducted September 14, 2026, which is broadly in line with several other recent surveys, continues to show no natural majority for either bloc. A party or coalition needs at least 61 seats to form a stable government:

Pro-Netanyahu bloc: 46 seats

  • Likud (Netanyahu): 20

  • Shas (Sephardi ultra-Orthodox): 7

  • United Torah Judaism (Ashkenazi ultra-Orthodox): 8

  • Otzma Yehudit (Ben Gvir): 6

  • Religious Zionism-Zehut (Smotrich): 5

Leaning Netanyahu bloc: 4 seats

  • Amcha Yisrael (Winter): 4

Center bloc: 4 seats

  • Reservists-New Economic Party (Yoaz Hendel): 4

Anti-Netanyahu bloc: 54 seats

  • Yashar (Eisenkot): 23

  • B’Yachad (Bennett and Lapid): 13

  • The Democrats (Yair Golan): 10

  • Yisrael Beytenu (Liberman): 8

Arab parties bloc: 12 seats

  • Arab Joint List: 8

  • Ra’am (Abbas): 4

Total: 120 seats

The numbers remain similar to other polling conducted over the past several weeks, suggesting that the basic political balance has been relatively stable since the summer.

  • The Arab parties may once again hold the balance of power. While neither major bloc currently appears capable of forming a government independently, questions remain regarding whether Arab parties would support, tolerate or oppose various coalition arrangements, and whether centrist parties would agree to rely on such support.
  • Recent surveys continue to show that while security remains an important concern for voters, questions surrounding the cost of living, religion and state, Haredi enlistment, governance, judicial authority and leadership after October 7 are increasingly shaping the campaign narrative.
  • See the Israel Democracy Institute’s Israel Elections Page that includes comprehensive information on the parties, issues, polling, candidates and more.

Jewish New Year Statistics

  • Pre-Rosh Hashanah figures show that Aliyah remains remarkably strong despite the war. More than 20,000 new immigrants from over 100 countries arrived in Israel during the just-ended Jewish year 5786. The largest groups came from Russia (5,685), France (4,364), the United States (3,333), and the United Kingdom (975). More than 28,000 additional people opened Aliyah files during the year, including increases of 31.5% from France, 17.1% from the United States, 68% from the UK, and nearly 90% from Australia. Thirty-five percent of new immigrants were aged 18-35, while 414 physicians also made Aliyah. Tel Aviv absorbed the largest number of new immigrants (2,762), followed by Netanya (2,224), Jerusalem (2,134), and Haifa (1,504).
  • Ahead of Rosh Hashanah, the Finance Ministry reported strong economic data. Israel's economy grew by 3.2%, while foreign investment surged 78% to $26 billion. Inflation fell from 2.5% to 1.5%, unemployment remained low at 3.3%, and the TA-125 stock index rose 35% over the past year. The shekel strengthened 11% against the dollar, the budget deficit declined from 4.7% to 3.3%, and Israel's debt-to-GDP ratio stood at 67.9%, compared with an OECD average of 111%. The high-tech sector remained a major driver of growth, with capital raised increasing 53.6%, while Israel ranked 3rd globally in AI commercialization, 6th in AI development, and 7th in AI research. The Ministry projects nominal GDP per capita will reach approximately $70,000 in 2026. Nonetheless, economists also note the extreme hardships in certain sectors, especially small businesses and the self-employed, who have faced three years of war, reserve duty, interruptions, closures and more.
  • Israel’s National Security Council issued a pre-High Holidays warning that the ongoing conflict with Iran, Hezbollah, Hamas, and other groups has increased the motivation of terrorist organizations to target Israelis and Jews overseas. The assessment noted that 25 Israelis and Jews have been killed in terrorist attacks abroad since the start of the war, highlighted growing threats from Iran and its proxies, Hamas efforts to build terrorist infrastructure in Europe, and concerns over a rise in lone-wolf attacks fueled by online incitement. The NSC also reiterated its highest-level travel warnings for countries including Jordan, Egypt’s Sinai Peninsula, Qatar, and Somaliland, and cautioned that the approach of the third anniversary of October 7 could lead to heightened protests, violence, and attempted attacks against Israeli and Jewish targets worldwide.

Other Developments

  • Israel and Morocco agreed to upgrade diplomatic relations this week by appointing ambassadors to each other's countries. Foreign Minister Gideon Sa'ar described the move as a significant step forward in bilateral ties and a further strengthening of the Abraham Accords framework.
  • The United States again denied Palestinian Authority President Mahmoud Abbas a visa to attend the UN General Assembly in New York. Abbas is now expected to participate remotely, marking the second consecutive year he has been prevented from traveling to the annual gathering.
  • Israel has become embroiled in a growing controversy surrounding the film "NAZA," which sharply criticizes IDF conduct. President Isaac Herzog condemned the film and its portrayal of Israeli soldiers, while Israel’s Minister of Culture and Sport proposed legislation that would strip citizenship from Israelis deemed to have smeared the IDF abroad.
  • The Trump Administration is reportedly preparing a $2.8 billion weapons package for Israel, including thousands of heavy munitions. At the same time, several congressional Democrats have voiced opposition.
  • US Vice President JD Vance sparked debate in Israel after publicly stating that “Israel can't dictate American policy” and emphasizing that the United States will pursue its own interests in the Middle East, even when they diverge from those of the Israeli government.
  • Israel and Greece signed an approximately $3.5 billion defense agreement, one of the largest defense export deals in Israel's history and the largest ever between the two countries. Under the "Achilles Shield" program, Israel will build a comprehensive multi-layered air-defense network for Greece based on Israeli systems, including David’s Sling, SPYDER, BARAK MX, advanced radar systems, and a national command-and-control network. The agreement reflects growing strategic cooperation between the two Eastern Mediterranean allies and follows the strong operational performance of Israeli air-defense systems during the recent conflict with Iran and its proxies.
  • Israeli and international archaeologists announced the discovery of an intact 2,000-year-old ritual bath (mikveh) during construction work in Kiryat Gat, in southern Israel. The 25-ton structure was removed in one piece in what officials described as an unusual engineering and archaeological operation.
  • President Isaac Herzog this week commemorated the 25th anniversary of 9/11, from Jerusalem's 9/11 Living Memorial, the only monument outside the United States that lists the names of all 2,977 victims of the attacks. Herzog honored the victims and first responders, reaffirmed Israel's solidarity with the United States, and noted that both countries continue to confront the threat of terrorism.

Jewish Federations Partner: The Jewish Agency for Israel

  • For the third consecutive year, the Jewish Agency's Campers2Gether program enabled more than 800 Israeli teenagers affected by October 7 and the ongoing war to spend part of the summer at more than 40 Jewish camps across North America and Europe. The program focused on building personal connections between Israeli and Diaspora Jewish youth while providing participants with a respite from the challenges of war. A new initiative launched this summer expanded Campers2Gether to include children from reserve-duty families, who participated in a dedicated summer camp experience in Greece designed to provide recreation, resilience-building, and peer support.
  • Through the Agency’s Fund for Victims of Terror, more than 1,300 children, teenagers, and parents affected by terrorism took part in summer programs and activities across Israel, including a nationwide family day, therapeutic programs, and community-building events.
  • The Jewish Agency also ran two ten-day camps that served approximately 450 children and teens from communities in northern and southern Israel, combining recreational activities with emotional support, leadership development, and resilience-building programming aimed at helping participants cope with the impact of war and terrorism.

For Further Reading

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

Jewish Federations of North America