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    Home > Headlines > Israel faces backlash at home and abroad over Gaza war escalation plan
    Headlines

    Israel faces backlash at home and abroad over Gaza war escalation plan

    Published by Global Banking and Finance Review

    Posted on August 8, 2025

    5 min read

    Last updated: January 22, 2026

    Israel faces backlash at home and abroad over Gaza war escalation plan - Headlines news and analysis from Global Banking & Finance Review
    Tags:financial crisisforeign currencyinvestmentfinancial marketseconomic growth

    Quick Summary

    Israel's plan to control Gaza City draws criticism globally, with concerns over hostages and military escalation.

    Israel's Military Escalation in Gaza Sparks Domestic and International Outcry

    By Alexander Cornwell

    JERUSALEM (Reuters) -Israel's security cabinet approved a plan to take control of Gaza City, a move expanding military operations in the shattered Palestinian territory that drew strong fresh criticism at home and abroad on Friday over its pursuit of the almost two-year-old war.

    Germany, a key European ally, announced it would halt exports of military equipment to Israel that could be used in Gaza. Britain urged Israel to reconsider its decision to escalate the Gaza military campaign.

    However, U.S. President Donald Trump's ambassador to Israel, Mike Huckabee, told Reuters that some countries appeared to be putting pressure on Israel rather than on the militant group Hamas, whose deadly attack on Israel in 2023 ignited the war.

    In Israel, families of hostages held by militants in Gaza, and opposition leaders blasted Prime Minister Benjamin Netanyahu for a decision that they said would put hostages' lives at risk.

    Far-right allies in Netanyahu's coalition have been pushing for a total takeover of Gaza as part of his vow to eradicate Hamas militants, though the military has warned this could endanger the lives of remaining hostages held by militants.

    Opposition leader Yair Lapid called the decision to send Israeli forces into Gaza City a disaster, saying it defied the advice of military and security officials.

    He accused far-right ministers Itamar Ben Gvir and Bezalel Smotrich of dragging Netanyahu into a prolonged campaign that would result in the deaths of hostages and soldiers.

    Netanyahu told Fox News Channel’s Bill Hemmer in an interview that aired on Thursday that the military intended to take control of all of Gaza.

    The announcement from the prime minister's office early on Friday after Thursday's security cabinet meeting said the military would take Gaza City, but did not say if Israeli forces would take all of the enclave. Israel's cabinet is expected to endorse the Gaza City plan.

    'HEART OF GAZA'

    The military has said that it controls around 75% of Gaza. Amir Avivi, a retired Israeli brigadier general, estimated that if the military did take Gaza City, it would give Israel control of about 85% of the strip.

    "Gaza City is the heart of Gaza. It's really the centre of government. It has always been the strongest and even in the eyes of Hamas, the fall of Gaza City is pretty much the fall of Hamas," said Avivi. "Taking over Gaza City is a game changer."

    Israeli media have said 900,000 people now live in Gaza City, including many who have been displaced by the military.

    Before the war, Hamas' most powerful fighting units were believed to operate in northern Gaza, including Gaza City.

    In the Fox News interview, Netanyahu said Israel did not want to keep the Gaza Strip, but to establish a "security perimeter" and to hand over the territory to Arab forces.

    There are 50 hostages still held in Gaza, of whom Israeli officials believe 20 are alive. Most of those freed so far emerged as a result of diplomatic negotiations. Talks toward a ceasefire that could have seen more hostages released collapsed in July.

    CONDEMNATION FROM ABROAD

    European Commission President Ursula von der Leyen was among foreign leaders urging Israel to reconsider its decision to advance into Gaza City.

    Regional power Saudi Arabia, which has said it could not normalise ties with Israel without the establishment of a Palestinian state, condemned any move to occupy Gaza.

    Asked in an interview with Reuters about criticism of Israel's decision to escalate the war, U.S. Ambassador Huckabee questioned why some nations were “once again” placing “all the pressure on Israel” instead of on Hamas.

    Huckabee said Trump was frustrated that Hamas is unwilling to reach "any kind of reasonable settlement", adding the president insists that the militant group cannot remain in power and must disarm.

    Israel had already come under mounting pressure at home and abroad over the war in Gaza, including over the humanitarian disaster in the enclave. In recent weeks, Britain, Canada and France said they could recognise a Palestinian state at the U.N. General Assembly next month.

    DOMESTIC PRESSURE

    Netanyahu has said there will be no end to the war until Hamas is disarmed. Opinion polls have shown that a majority of Israelis believe he should end the war immediately in a diplomatic agreement that would see the release of remaining hostages.

    The Hostages Families Forum, which represents many families of captives in Gaza, said the pursuit of occupying Gaza means abandoning the hostages all while ignoring public support to immediately end the war in a deal that releases the hostages.

    It said in a statement the security cabinet had chosen to "embark on another march of recklessness, on the backs of the hostages, the soldiers, and Israeli society as a whole".

    "I think it's a death sentence to all the hostages that are still being held there. And it's the wrong decision to do it at this time," Danny Bukovsky, a hotelier in Tel Aviv, said of the announcement that Israeli forces would move into Gaza City.

    A full occupation of Gaza would reverse a 2005 decision in which Israel withdrew thousands of Jewish settlers and its forces, while retaining control over its borders, airspace and utilities. 

    (Reporting by ReutersWriting by Michael Georgy and Alexander CornwellEditing by Frances Kerry)

    Key Takeaways

    • •Israel plans to take control of Gaza City, escalating the conflict.
    • •Germany halts military exports to Israel amid criticism.
    • •Netanyahu faces domestic backlash over hostage safety concerns.
    • •International leaders urge Israel to reconsider its military strategy.
    • •The fall of Gaza City could significantly impact Hamas' control.

    Frequently Asked Questions about Israel faces backlash at home and abroad over Gaza war escalation plan

    1What decision did Israel's security cabinet make regarding Gaza?

    Israel's security cabinet approved a plan to take control of Gaza City, expanding military operations in the territory.

    2How have foreign leaders reacted to Israel's military escalation?

    Foreign leaders, including Germany and Saudi Arabia, have condemned Israel's decision to escalate military actions in Gaza, urging reconsideration.

    3What concerns have been raised by Israeli families of hostages?

    Families of hostages held by militants criticized Prime Minister Netanyahu, stating that the military escalation would endanger the lives of hostages.

    4What is the estimated population of Gaza City currently?

    Israeli media reports indicate that approximately 900,000 people now live in Gaza City, many of whom have been displaced by military actions.

    5What is Netanyahu's stance on the Gaza Strip?

    Netanyahu stated that Israel does not intend to keep the Gaza Strip permanently but aims to establish a 'security perimeter' and transfer control to Arab forces.

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