Ceasefire Deal: Not a Strategic Victory for Israel, Economy Minister Says

The recent ceasefire agreement between Israel and Hamas in Gaza has sparked debate among Israeli officials and the public, with Economy Minister Nir Barkat asserting that the deal is not a strategic victory for Israel. The agreement, which includes the release of hostages and Palestinian prisoners, has been criticized by some for not achieving a "total victory" over Hamas.

The ceasefire, if adhered to, reduces the risks to Israel's public finances and could improve its sovereign credit rating, according to ratings agencies Moody's and Fitch. However, Barkat argues that the deal does not address the root causes of the conflict and may not be in Israel's long-term strategic interests.



Barkat's concerns are echoed by some Israeli analysts, who worry that the release of Palestinian prisoners convicted in deadly attacks on Israelis could embolden Hamas and other militant groups. They also fear that the deal may not be durable, as Hamas has a history of violating ceasefires and resuming hostilities.



Moreover, the ceasefire agreement may have political implications for Prime Minister Benjamin Netanyahu. While the deal addresses the Israeli public's demand for the return of captives, it may not be enough to satisfy the demand for a "total victory." Netanyahu had promised to return all the captives and faced mass protests as critics, including some hostage families, accused him of putting his political interests ahead of quickly getting them back, allegations he vehemently denied.

The ceasefire agreement may also have implications for Netanyahu's position as prime minister. His far-right allies have threatened to bring down the government over the release of Palestinian prisoners, and even if they don't bolt immediately, his position will be less secure than it was when bombs were falling on Gaza.

In conclusion, while the ceasefire agreement between Israel and Hamas addresses the immediate concern of returning captives, it may not be a strategic victory for Israel in the long run. The deal has sparked debate among Israeli officials and the public, with some expressing concerns about the durability of the agreement and its potential political implications for Prime Minister Benjamin Netanyahu. As the situation continues to evolve, investors and geopolitical analysts will be closely watching the developments in the region.