Israeli Finance Minister Bezalel Smotrich has announced Israel’s readiness to construct three Jewish settlements in northern Gaza, contingent on Prime Minister Benjamin Netanyahu’s approval. This move is part of a broader call by Smotrich for the full conquest of Gaza, reflecting an expansionist policy amidst the ongoing Israel-Hamas conflict. Despite a de jure ceasefire since October 2025, Israel’s control over Gaza has increased, raising tensions and potential deviations from the peace deal terms. This announcement comes amid increasing far-right political pressure to establish permanent settlements in contested regions, challenging the viability of a two-state solution.
Key Takeaways
Smotrich’s announcement appears to increase tensions, suggesting a potential deviation from the existing peace deal.
Market pricing suggests a decreased likelihood of Israeli parliament dissolution, as Netanyahu may prioritize consolidating power.
The advocacy for settlement expansion indicates potential instability in the region, consistent with scenarios where peace negotiations stall.
