Israel is preparing for the possibility that the renewed hostilities between the US and Iran could escalate into another full scale war, although the assessment on Wednesday from Israeli officials was that a return to conflict was not likely.Air force, air defence and intelligence units were placed on high alert although there were no special instructions to the public and no restrictions were placed on public gatherings.The Israeli leadership and much of the public consider the Gulf war unfinished business, particularly because Iran’s stockpile of enriched uranium remains in place and the regime maintains a ballistic missile capability.“Anyone who said Trump turned his back on us was wrong. The talk of defeat was premature,” an Israeli official said in an initial reaction after US president Donald Trump indicated, in comments at the Nato summit in Ankara on Wednesday, that the interim peace deal was over.The interim ceasefire agreement signed between Washington and Tehran – under the mediation of ​Pakistan – was intended to provide a 60-day window ​for negotiations on a permanent agreement.It was greeted with disbelief in Israel and was considered a humiliating surrender that failed to turn a military success into a strategic achievement. More than 90 per cent of Israelis in one survey said they believed that under the terms of the deal, Iran emerged victorious. At the same time there was a widespread belief that the negotiations during the 60-day ceasefire would fail to result in a lasting peace agreement and, therefore, the resumption of hostilities was considered a question of time.Smoke rises following Israeli explosions in the village of al-Taibeh as seen from Nabatieh in southern Lebanon on July 8th. Photograph: Abbas Fakih/AFP via Getty Even though the Iranian regime appears relatively secure, Israeli commentators welcomed Trump’s comments that he may reinstate the US blockade of Iranian ports as a potentially significant blow to the Iranian economy.The agreement also called for a ceasefire in Lebanon between Israeli forces and the Iranian-backed Hizbullah, which has largely held despite occasional infringements from both sides.It remains to be seen if the collapse of the deal will precipitate a resumption of hostilities in Lebanon. Israeli security officials warned this week they believe that Hizbullah is actively preparing for a possible resumption of hostilities in the north, while discussions between Israel and Lebanon were continuing in an effort to reach a comprehensive peace agreement.US-Israeli strikes on Iran and Israeli attacks on ⁠Lebanon during ​the war, which began on February 28th, have killed thousands and displaced millions. – Additional reporting: Reuters