Netanyahu Faces Ultimatum as Smotrich Demands War Resumption and Rafah Tent City Plan

Watan-Israeli Prime Minister Benjamin Netanyahu met with Finance Minister Bezalel Smotrich, who threatened to withdraw from the government if he does not receive guarantees that the war of extermination against Palestinians will resume after a proposed 60-day ceasefire, as outlined in the prisoner exchange deal currently on the negotiating table.

While Israel insists on occupying wide areas of the Gaza Strip and maintaining control over the “Morag” and “Philadelphi” (Salah al-Din) corridors—intending to establish a ghetto to confine Palestinians in Rafah and control them via the joint American-Israeli aid company that also requires an Israeli military presence in “Morag” for protection—Hamas, for its part, refuses to sign any deal that does not guarantee an end to the war and a full withdrawal of Israeli forces from Gaza.

In light of this, Netanyahu is set to convene a meeting of the Security and Political Affairs Cabinet (the “Cabinet”) later today to discuss a modified version of the deal, which he plans to present to Hamas via mediators. According to the Israeli website Ynet, the revised proposal is expected to address the two main points of contention: the areas Israel will continue to control after the deal is implemented, and the nature of how humanitarian aid will be delivered (whether through the U.S.-Israeli company or international organizations).

As for the Netanyahu–Smotrich meeting, held yesterday following Netanyahu’s return from Washington—where he met with top U.S. officials, including President Donald Trump—Ynet reported that Netanyahu called Smotrich three times during the U.S. trip to soften his hardline stance on resuming the war. Another meeting between the two is expected today.

Smotrich conveyed messages to Netanyahu that, unlike the previous deal implemented in January, this time he will not remain in a government that—according to him—“fails to achieve the main goal of the war, which is the destruction of Hamas.” On multiple occasions, the head of the Religious Zionism Party has demanded explicit commitments that the war will resume immediately after the ceasefire ends and that all hostages will be recovered.

Meanwhile, some Cabinet ministers acknowledged that Netanyahu also repeatedly insists in public statements on the necessity of destroying Hamas by the end of the war and that he is determined to continue fighting after the deal. According to these ministers, Netanyahu sees Gaza as a strategic issue that tests Israel’s spirit, determination, and resolve.

As of now, Smotrich and his allies in the far-right Otzma Yehudit party led by Itamar Ben Gvir continue to reject the proposed deal because it involves withdrawing the army from strategic areas. Hamas also rejects the current proposal and refuses any plan that allows Israeli forces to remain in Gaza. Israel, for its part, is trying to draft an alternative proposal. Smotrich is demanding that Netanyahu present a detailed plan outlining what will happen after the deal is completed, but according to Ynet, “such a plan does not yet exist.”

On another front, the Cabinet will also discuss today the plan to establish a ghetto in Rafah to concentrate the Palestinian population. This project is expected to cost between 10 and 15 billion shekels ($2.7–$4 billion USD), according to estimates published by Yedioth Ahronoth. These revelations have led some Cabinet ministers, led by Smotrich, to accuse the army of trying to sabotage the plan by presenting “misleading information about the cost.”

In line with this, Netanyahu reportedly promised his ministers—according to Israel Hayom—that Israel will resume fighting Hamas after the deal, until the group is defeated. The paper noted that during this evening’s Cabinet meeting, the army will present a plan for establishing the “tent city,” despite the opposition expressed in recent days by IDF Chief of Staff Herzi Halevi.

Meanwhile, opposition leader Yair Lapid criticized the plan, saying, “With the 15 billion shekels Smotrich wants to waste on building a tent city in Rafah, we could reduce classroom overcrowding, lower fuel and public transport costs, and fund kindergartens in Israel.” In a post on X (formerly Twitter), he added, “This money will disappear and never return,” accusing Netanyahu of allowing Smotrich and Ben Gvir to run wild with their extremism just to maintain the coalition. “Instead of wasting these funds, end the war and bring back the hostages,” he said.

Meanwhile, according to Israel Hayom, the military awaits a clear political decision on whether to continue operations in Gaza. So far, it estimates it can capture an additional 5–7% of Gaza’s territory, but it is waiting for explicit political instructions, especially as the army’s current operation—code-named “Gideon’s Chariots”—nears its end.