Israel Today: Ongoing War Report - Update from 2026-07-01 at 06:01

HEADLINES
Ex-hostage negotiator warns Gaza war could've ended
Israel targets crypto wallets backing Iran proxies
High Court freezes Rabello state comptroller appointment

The time is now 6:01 AM in New York, I'm Noa Levi and this is the latest Israel Today: Ongoing War Report.

In Regional Impacts, a former hostage negotiations coordinator says the Gaza war could have ended about a year earlier and potentially yielded more from Hamas in disarmament, with unnecessary losses in Israeli soldiers and up to around 40 hostages who were killed during captivity or in its aftermath. Major-General (Reserve) Nitzan Alon, who led the effort to recover hostages from October 2023 to October 2025, said he pressed for earlier deals but was denied by Prime Minister Benjamin Netanyahu. He also pushed back on claims by Finance Minister Betzalel Smotrich that he bore the most responsibility for returning the hostages, noting that even with efforts to secure all releases, roughly 40 hostages who were alive at the time were nonetheless killed. Separately, a heat wave in Spain in June killed more than 1,000 people, underscoring regional vulnerabilities to extreme heat.

In the Conflict with Iran and its Regional Proxies, Defense Minister Israel Katz announced sanctions on 37 cryptocurrency wallets linked to the Islamic Revolutionary Guard Corps, totaling about 24 million shekels, which were used to fund Iranian terror proxies including Hezbollah. Investigations indicate tens of millions of dollars flowed to these groups through the wallets over several years. Katz said the campaign against Iran extends beyond the battlefield and targets the money that drives terrorism, promising to continue cutting off financing routes for Iran’s terror axis worldwide.

In US Policy Concerning Israel, Defense Ministry Director-General Amir Baram said Israel views Iran as an existential threat, while the United States regards it as a chronic regional challenge, a difference he framed as a mismatch in priorities. He added that “We think Tehran, they think Taiwan,” and cautioned against judging American policy through a narrow lens, noting that the Pentagon’s perspective on stretched munitions and competing priorities in Asia shapes Washington’s approach. He argued that a prolonged war in the Middle East could complicate broad US strategic aims in a shifting global context.

In Israeli Domestic Politics, the High Court of Justice temporarily froze the appointment of attorney Michael Rabello as state comptroller, just days before he was due to take office, while a final ruling is being prepared. The order, issued by the court’s leadership, aims to allow the legal process to run its course and to issue a ruling at the earliest convenience. This development follows broader attention to Rabello, who is a defense attorney for Prime Minister Netanyahu, as the appointment faces ongoing judicial scrutiny.

Thank you for tuning in to this Israel Today: Ongoing War Report update.
I'm Noa Levi. Stay safe and informed.
Keep in mind that this AI-generated report may contain occasional inaccuracies, so consult multiple sources for a comprehensive view. Find the code and more details in the podcast description.

SOURCES
https://www.jpost.com/israel-news/defense-news/article-901047
https://t.me/newssil/205669
https://www.jpost.com/israel-news/article-901046
https://www.jpost.com/israel-news/defense-news/article-901053
https://www.jpost.com/israel-news/politics-and-diplomacy/article-901070
https://www.ynetnews.com/article/rkjy1df7fl
https://t.me/newssil/205668