Israel’s Crucible: Forging a New Security Paradigm

Navigating Complex Threats from Hamas, Hezbollah, Iran, and Beyond in a Shifting Middle East Landscape

This report is based off a talk that the author gave on October 1, 2024 in New York City.
Fluttering Israel flag on crimson red sky with smoke pillars background. Israel problems concept.

Israel has been at war for one year, fighting enemies on seven fronts.

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On October 7, 2023, Hamas shattered Israel’s illusion of security. In a single day, the militant group killed 1,200 Israelis and took more than 200 hostages, exposing critical vulnerabilities in Israel’s defense posture. Now, Israel faces an existential struggle on multiple fronts: Hamas in Gaza, Hezbollah in Lebanon, Iran’s nuclear ambitions, Houthi missiles from Yemen, and resurging violence in the West Bank. This analysis examines Israel’s options for defeating these interlinked threats and securing its future.

The Failure of Deterrence in Gaza

For fifteen years, Israel pursued a “mowing the lawn” strategy in Gaza. Operations like Cast Lead (2009), Pillar of Defense (2012), Protective Edge (2014), and Guardian of the Walls (2021) followed a predictable cycle: strike Hamas, declare victory, allow reconstruction. Each time, Israel claimed to have reestablished deterrence. Yet this approach failed spectacularly on October 7, 2023, when Hamas exploited Israel’s complacency to launch a devastating assault.

The aftermath of these operations saw billions of dollars flow into Gaza for reconstruction. However, the lack of proper oversight allowed Hamas to exploit this aid. Projects like the World Bank’s water reclamation efforts and attempts to establish new neighborhoods throughout the coastal envelope inadvertently provided cover for Hamas to divert resources to military purposes. Hospitals were modernized, each bearing the name of its donor country—the Kuwaiti Hospital, the Jordanian Hospital, the Emirati Hospital, the Qatari Hospital. Yet beneath this veneer of development, Hamas built an extensive tunnel network and amassed an arsenal of rockets.

Israel now grapples with ninety-seven to 101 hostages in Hamas captivity. The 2011 Gilad Shalit exchange—trading one Israeli soldier for 1,000 Palestinian prisoners—looms large over current deliberations. That deal freed Yahya Sinwar, now Hamas’s Gaza leader and a key architect of the October 7 attack. Israel faces a stark choice: negotiate and risk freeing future attackers or continue fighting at the cost of hostage lives.

To break the cycle of repetitive conflict, Israel now finds itself shifting toward new, more aggressive strategies. With most of Hamas’s senior leadership eliminated and the destruction of the vast majority of its tunnel networks, the situation has changed dramatically. As of 2024, Israeli forces have systematically targeted and neutralized key figures within Hamas, including the significant strike that killed former Hamas leader Ismail Haniyeh in Tehran. These precision decapitation operations have created significant leadership vacuums, severely impairing Hamas’s ability to coordinate large-scale operations or pose an immediate existential threat.

Alongside these targeted strikes, Israel has made substantial advancements in its efforts to destroy Hamas’s tunnel networks, which once spanned over 500 kilometers (310 miles) beneath Gaza. By employing cutting-edge technologies such as ground-penetrating radar, seismic sensors, and advanced robotic systems, Israel has neutralized the bulk of these underground routes. These tunnels, long used by Hamas for surprise attacks, weapons storage, and smuggling, are now largely inoperable, significantly reducing Hamas’s operational capacity. This dual strategy of leadership decapitation and tunnel destruction aims to permanently degrade Hamas’s ability to wage war and to fortify Israel’s security for the long term.

With Hamas’s leadership decimated and its tunnel infrastructure mostly dismantled, Israel now faces the critical challenge of managing the “day after” scenario. The vacuum left by Hamas’s collapse presents both an opportunity and a risk. While the immediate threat has been significantly reduced, the absence of a centralized authority in Gaza could lead to instability, with smaller factions vying for power. These groups, potentially less structured and more unpredictable than Hamas, could pose new security challenges if not properly addressed.

To prevent further escalation and to break the cycle of repetitive conflict, Israel must shift its focus from purely military solutions to a comprehensive post-conflict strategy. This involves coordinating with regional partners and the international community to implement a tightly controlled reconstruction process. Unlike previous efforts, this approach would prioritize strict oversight mechanisms to ensure that humanitarian aid and economic development initiatives directly benefit the civilian population without being diverted for military purposes. By fostering carefully monitored infrastructure development and creating job opportunities, Israel and its partners could help mitigate the appeal of extremism among the younger generation in Gaza while maintaining security. In this delicate phase, Israel’s actions, coupled with international cooperation and accountability, will shape not just the security of its borders, but the future political landscape of Gaza, aiming to establish long-term stability and prevent the misuse of aid that occurred in the past.

Resurgent Violence in the West Bank

The resurgence of violence in the West Bank, marked by a return to tactics not seen since 2006, underscores the urgency for Israel to rethink its strategy in the region. In just the past month, Israeli security services thwarted a suicide bombing in Jaffa, responded to two car bombings in the West Bank, and prevented a fourth attack. These incidents, largely orchestrated by Hamas leader Zaher Jabarin from Istanbul, seek to reignite the West Bank as a battleground. This escalating violence stretches Israel’s military resources and threatens to destabilize the fragile status quo with the Palestinian Authority (PA).

The current wave of violence involves a new generation of militants, often disconnected from traditional Palestinian factions. Referred to as the “TikTok Generation,” these young activists organize through social media, making their movements unpredictable and harder to track. Their tactics range from coordinated armed assaults to spontaneous attacks like stone-throwing, creating an unpredictable security environment. While the Israel Defense Forces (IDF) have responded with nightly raids, increased surveillance, and advanced AI-driven facial recognition technologies, the friction between Israeli security forces and the Palestinian population only seems to be deepening.

At the core of this security challenge lies the Palestinian Authority, whose grip on power has weakened considerably. Economic hardship, corruption, and years of political stagnation have eroded the PA’s legitimacy among Palestinians. With the PA’s ability to control violence and maintain security cooperation with Israel diminishing, militant groups like Hamas have found opportunities to expand their influence, further destabilizing the region. Yet, as Israel contemplates how to deal with Hamas, it cannot ignore the need to address the PA’s failures in the West Bank.

After dismantling Hamas in Gaza, Israel must focus on the dismantling of the PA in the West Bank. The centralized governance model under the PA has become a liability, unable to govern effectively or curb militant activities. Rather than relying on the old PA structure, Israel should decentralize governance in the West Bank, empowering local leadership in smaller Palestinian communities. This move would disrupt the corrupt entrenched lites and provide a governance system that is more attuned to local needs, reducing the chances for future power vacuums that militant groups like Hamas could exploit.

Such decentralization also would set the stage for a transition of power to a new generation of Palestinian leadership. Israel’s goal should be to nurture a younger, more pragmatic Palestinian leader—one less focused on ideological confrontation and more committed to practical governance and security cooperation. This new leadership must be tested for its ability to manage the complex tribal and local dynamics of the West Bank, ensuring long-term stability. By rebuilding the West Bank in this way, Israel can pave the way for a more cooperative, less confrontational Palestinian governance system that is resilient against the radical influences of groups like Hamas.

A comprehensive approach that combines this political restructuring with enhanced security measures and economic incentives is essential. Economic development, especially targeted projects in high-risk areas, can help reduce the underlying frustrations that fuel violence. By rebuilding the West Bank in a decentralized manner, Israel can ensure that the future leadership is better equipped to govern effectively, thus securing both Israel’s interests and long-term regional stability.

The Hezbollah Threat in the North

Hezbollah poses an even greater danger than Hamas. With an arsenal estimated at 150,000 to 200,000 rockets, including precision-guided missiles, Hezbollah has effectively created a buffer zone inside Israeli territory. This has forced the evacuation of 100,000 Israelis within four kilometers of the Lebanese border, a situation reminiscent of the pre-2000 security zone in southern Lebanon, but with roles reversed.

Hezbollah’s military capabilities have grown exponentially since the 2006 Lebanon War. The group now boasts sophisticated anti-tank and anti-air systems, thousands of drones, and a fighting force estimated between 25,000 to 50,000 militants. Their extensive tunnel network along the Lebanese-Israeli border serves as a strategic asset for clandestine movement and guerrilla warfare.

Israel’s recent operations have targeted Hezbollah’s communications infrastructure. In September 2024, Israel destroyed over 4,000 communication devices in Hezbollah’s hands—including beepers, radio batteries, and solar water heaters on Hezbollah-affiliated households in the Dahiyeh suburb of Beirut. This preemptive strike aimed to disrupt Hezbollah’s command and control capabilities.

However, more comprehensive action is needed. Economic warfare could prove highly effective. Israel should work with international partners to freeze Hezbollah’s global assets and disrupt their drug trafficking and money laundering operations. Targeting Hezbollah’s financial networks could significantly hamper their ability to maintain and expand their military capabilities.

Advanced area denial technologies offer another solution. Israel should deploy a new generation of autonomous drones and AI-powered defense systems to create impenetrable “no-go” zones along the Lebanese border. These systems could detect and neutralize infiltration attempts, providing Israel with a decisive technological edge in border security.

But the hard truth remains: The only way to eliminate Hezbollah as a long-term threat is through a full-scale invasion of Lebanon, all the way to the Litani River. This would allow Israel to root out Hezbollah’s infrastructure, weapons caches, and tunnel networks once and for all. While the costs would be high—both in terms of Israeli casualties and potential damage from Hezbollah’s precision-guided munitions—the long-term security gained by eradicating Hezbollah’s military presence outweighs the risks. Diplomatic and economic measures may slow Hezbollah, but to truly dismantle its capabilities, Israel must take decisive military action, pushing Hezbollah beyond the Litani River, and ensuring they are never able to re-establish themselves on Israel’s doorstep.

Countering Iran’s Regional Ambitions

Iran remains the puppet master, supporting Hamas, Hezbollah, and other proxies across the region. Tehran’s “Axis of Resistance” encompasses the Lebanese Hezbollah, Hamas, the Houthi movement in Yemen, various Shi’ite armed groups in Iraq, and allies in Syria. This network allows Iran to project power and threaten Israel from multiple directions.

Direct military action against Iran’s nuclear program carries significant risks and may only delay, not destroy, their capabilities. Israel’s ability to conduct a sustained air campaign against hardened and dispersed Iranian nuclear sites is limited. Moreover, there’s a lack of political will in the United States for long-term offensive operations against Iran.

Instead, Israel should intensify its cyber warfare campaign. Escalating attacks on Iran’s nuclear facilities, Hezbollah’s financial networks, and Hamas’s command systems could disrupt operations without conventional military engagement. The Stuxnet virus, which targeted Iranian centrifuges in 2010, provides a model for this approach. By leveraging its technological superiority, Israel can inflict significant damage while minimizing the risk of conventional conflict escalation.

Israel also should explore “non-kinetic coercion” strategies aimed at leveraging internal dissatisfaction within Iran. Recent polls show 85-90% of Iranians oppose the current regime, presenting an opportunity to destabilize Tehran without direct military confrontation. Coordinated labor strikes, particularly in key sectors like oil refining in Khuzestan province, could potentially collapse Iran’s economy from within.

This strategy harkens back to the tactics that led to the Shah’s downfall in 1979. Then, it was strikes in Tehran’s Grand Bazaar that dealt the final blow to the regime. Today, targeting Iran’s economic vulnerabilities could prove more effective than military strikes in curtailing its regional ambitions and nuclear program.
Israel has demonstrated its reach and precision in strikes against Iranian targets. In April 2024, Israel used a stealth missile to destroy a radar array near Iran’s uranium enrichment facility in Isfahan, penetrating four layers of air defenses. This surgical strike sent a clear message about Israel’s capabilities and willingness to act deep inside Iranian territory.

The Emerging Houthi Threat

Yemen’s Houthi rebels have emerged as a new threat to Israel’s security. In July 2024, a Houthi drone strike killed one person and wounded four others in Tel Aviv, demonstrating their ability to reach Israeli territory. The drone followed the same flight path as commercial jets landing at Ben Gurion airport, exposing vulnerabilities in Israel’s air defenses. Israel’s response targeted Yemen’s primary port of Hodeidah, destroying facilities capable of receiving large shipments of oil, gas, and weaponry. This strike aimed to disrupt the Houthis’ supply lines and deter further attacks. However, a long-term strategy is needed to address this evolving threat, which could potentially open a new southern front in Israel’s multi-front conflict.

A key element of such a strategy would be the targeted assassination of key Houthi leaders, especially those responsible for overseeing their drone and missile programs. The leadership of the Houthi movement, much like Hezbollah and Hamas, is centralized around a few prominent figures who maintain tight control over their military operations. By eliminating these individuals, Israel can effectively disrupt the chain of command, creating disarray within the group and degrading its operational capabilities. Similar to how the assassination of Iranian General Qasem Soleimani weakened Iran’s regional network of proxies, removing Houthi leaders would send a strong message of deterrence.

Targeted strikes, enabled by Israel’s advanced intelligence capabilities and precision drone technology, would not only remove immediate threats but also force the Houthis to rethink their strategic priorities. The psychological impact of these assassinations could push the group to scale back its ambitions against Israel, knowing that high-level leadership is always within Israel’s reach. Moreover, targeted killings avoid the collateral damage of broader military campaigns and minimize civilian casualties, making it a more focused and morally defensible approach.

Additionally, Israel should consider a series of naval raids on Houthi-controlled ports and coastal installations. These raids, conducted by Israel’s elite naval commandos, could destroy key military assets and infrastructure, further restricting the Houthis’ ability to carry out long-range attacks. Strikes on their missile stockpiles, drone launch facilities, and weapons smuggling routes would have an immediate impact on their warfighting capabilities. By targeting their maritime supply lines, Israel could cut off the flow of advanced weaponry from Iran and other external supporters, crippling the Houthis’ ability to sustain prolonged military operations.

Such a combined approach of targeted assassinations and naval operations would have a clear deterrent effect on the Houthis. It would signal that any further aggression toward Israel will come at a steep price, not just in terms of military assets but also leadership losses. The Houthis would be forced to divert resources away from attacking Israel, refocusing their efforts on defending their remaining infrastructure.

Innovative Approaches to Multiple Fronts

To counter these diverse and evolving threats, Israel should consider implementing several innovative strategies:

  1. Massive Disinformation Campaign: Israel’s intelligence services should create fake social media profiles and infiltrate online communities sympathetic to Hamas and Hezbollah. These assets could disseminate false information about leadership decisions, accusing key figures like Yahya Sinwar or Hassan Nasrallah of embezzling funds, collaborating with foreign intelligence, or betraying core principles. Simultaneously, leaked “classified” documents could be planted in pro-Hezbollah and pro-Hamas news outlets, suggesting internal power struggles, leading to chaos and mistrust among their ranks.
  2. Weaponized Economic Aid: Coordinate with international organizations to launch infrastructure development projects in Gaza and southern Lebanon but only in communities that demonstrate a rejection of Hamas and Hezbollah. These projects should be tied to visible, grassroots efforts, such as local councils removing pro-militia symbols or voting to adopt anti-militant policies. Develop schools, clinics, and agricultural programs but condition the aid on these communities publicly distancing themselves from militant leadership and agreeing to stringent demilitarization protocols.
  3. Psychological Warfare Escalation: Israel should use deepfake technology and personalized messaging to target individual Hamas and Hezbollah fighters. For instance, create videos of Hamas commanders appearing to negotiate with Israeli intelligence and send them directly to militants via encrypted messaging apps. Broadcast audio recordings of key leaders allegedly abandoning their fighters to save themselves. Develop personalized leaflets and drop them over Hezbollah and Hamas strongholds, highlighting the fighters’ families’ suffering or suggesting they are on a “list” for targeted assassination.
  4. Diplomatic Ultimatum: Work with regional partners like Egypt, Jordan, and the United Arab Emirates (UAE) to publicly issue a final ceasefire proposal to Hamas and Hezbollah, demanding immediate disarmament and recognition of Israel. Make the ultimatum highly specific, offering infrastructure aid, international reconstruction funds, and political recognition for Gaza and southern Lebanon in return. Should the militant groups reject this, Israel can justify escalated military action having exhausted all peaceful avenues.
  5. Overwhelming Force Demonstration: Coordinate a massive simultaneous strike on key Hezbollah and Hamas military and civilian targets. Use precise intelligence to hit their missile storage facilities, command centers, and communication networks within the same hour across all regions—Gaza, Lebanon, and even Iran if necessary. This action should be backed by pre-positioned Iron Dome and David’s Sling missile defense batteries to counter retaliation, sending a message that Israel can dominate all fronts simultaneously.
  6. Decentralized Resistance Networks: Covertly fund and arm tribal leaders, local councils, and smaller factions in southern Lebanon and Gaza who oppose Hezbollah and Hamas. Israel should offer intelligence support and money to buy loyalty and guide them toward creating their own militias. These militias would serve as a counterforce to the militants, weakening Hezbollah and Hamas from within, forcing them to deal with both internal and external enemies.
  7. Enhanced Cyber Warfare: Launch aggressive cyberattacks on Hamas’s financial networks, specifically targeting cryptocurrency accounts and shell companies that fund their operations. Israel’s Unit 8200 should disrupt Hezbollah’s command and control systems by launching malware into their encrypted communications networks. Simultaneously, Israel should conduct cyberattacks on critical infrastructure in southern Lebanon and Gaza—such as water and electricity supplies—to make it harder for Hezbollah and Hamas to function and gain support from civilians.
  8. Selective Targeting of Supply Lines: Israel should develop a network of operatives in Syria and Iraq to sabotage arms shipments destined for Hezbollah and Hamas. Special forces units should raid convoys moving weapons through the Bekaa Valley and the Syrian-Lebanese border region, targeting Iranian proxy forces supplying Hezbollah. The Israeli Navy should expand its operations in the Mediterranean and Red seas, deploying submarines to intercept ships suspected of carrying arms to Gaza, Yemen, or Lebanon.
  9. Covert Intelligence Operations: Israel should expand its human intelligence (HUMINT) network inside Lebanon, Gaza, and even Iran, focusing on embedding agents deep within Hezbollah and Hamas. These agents should be tasked with gathering real-time intelligence on upcoming attacks, arms shipments, and leadership movements. Simultaneously, Israel’s Mossad should continue conducting targeted assassinations of mid-level commanders, removing them one by one to erode leadership and chain-of-command efficiency, making it difficult for the top leadership to coordinate actions.

The Regional Chessboard

The broader Middle East remains a chessboard of shifting alliances. The Abraham Accords, signed in 2020, have opened new avenues for cooperation between Israel and some Arab states, complicating Iran’s strategic calculus. The formation of a Middle East-wide air defense alliance, including Israel, Saudi Arabia, and the UAE, demonstrates this evolving landscape of regional security cooperation.

These diplomatic developments provide Israel with new opportunities for intelligence sharing, military cooperation, and economic partnerships. They also serve to isolate Iran and its proxies, potentially making them more vulnerable to economic and diplomatic pressure.

However, these alliances are still in their early stages and remain fragile. Israel must carefully balance its military actions against Hamas and Hezbollah with the sensitivities of its new Arab partners. Excessive civilian casualties or a prolonged conflict could strain these relationships and push public opinion in Arab countries against normalization with Israel.

Economic Considerations

Israel’s prolonged conflict is taking a significant toll on its economy, with costs projected to soar as high as $400 billion over the next decade due to indirect impacts like reduced investments, labor shortages, and declining productivity. In the final quarter of 2023, Israel’s economy contracted by 20%, driven largely by the mobilization of 300,000 reservists and a freeze on Palestinian workers, who traditionally filled key roles in construction and agriculture. Consumer spending plummeted by 27%, while imports dropped 42%, and exports decreased by 18%. Despite still achieving 2% economic growth for the year, this was a sharp decline from the 6.5% growth seen prior to the war.

The labor market has been particularly disrupted. With 85,000 Palestinian workers prevented from entering Israel, sectors like construction, agriculture, and nursing were hit hard. Though Israel turned to alternative labor sources from countries like India and Sri Lanka, this has not fully offset the shortages, further exacerbating the economic slowdown. By mid-2024, the war had forced the closure of more than 46,000 businesses, with ripple effects extending across nearly all sectors of the economy.

In addition to these indirect effects, the direct financial burden of the conflict has been staggering. Israel’s weekly war expenditures are estimated at $600 million, representing about 6% of its weekly GDP. The government has sought to mitigate the damage by establishing a $2.7 billion loan fund and offering grants to businesses struggling with lost revenue, yet these measures address only part of the broader economic strain. The national budget also has been increased by approximately $19 billion to cover ongoing defense spending, but this expansion has led to growing concerns about Israel’s long-term fiscal health.

If the fighting extends into 2025, the cost of the war could exceed $53 billion, leading to more severe budget constraints. With potential downgrades to Israel’s credit rating looming, continued fighting on multiple fronts would further strain Israel’s resources and potentially could lead to economic instability. This could affect Israel’s ability to maintain its technological edge and sustain long-term military operations. Balancing security needs with economic stability requires careful calibration and may influence the intensity and duration of Israel’s military campaigns.

A Comprehensive Strategy for Victory

Israel faces a series of complex, interconnected challenges that demand a comprehensive and innovative approach. The multi-front nature of this conflict requires responses that integrate military, diplomatic, economic, and intelligence efforts. As the situation evolves, Israel must remain adaptable, leveraging its technological prowess and strategic acumen to navigate these treacherous waters.

The path forward requires balancing immediate security needs with long-term strategic objectives. Israel’s leadership must make difficult decisions, weighing the costs and benefits of each action across multiple fronts. In this high-stakes environment, there are no easy answers—only hard choices with far-reaching implications for Israel’s future and regional stability.

By embracing a combination of innovative military strategies, economic warfare, psychological operations, and targeted diplomacy, Israel can work toward neutralizing the threats posed by Hamas, Hezbollah, and Iran. The road ahead is fraught with challenges, but with clear-eyed assessment and resolute action, Israel can emerge stronger and more secure in the face of these existential threats.

The coming months and years will test the resilience of the Israeli people and the wisdom of Israel’s leaders. Success will require not only military might but also strategic patience, diplomatic finesse, and the ability to seize unexpected opportunities. In this crucible of conflict, Israel has the chance to reshape the regional security landscape in its favor, but only if it can navigate the complex web of threats and alliances with skill and determination.

Gregg Roman functions as the chief operations officer for the Forum, responsible for day-to-day management, communications, and financial resource development. Mr. Roman previously served as director of the Community Relations Council of the Jewish Federation of Greater Pittsburgh. In 2014, he was named one of the ten most inspiring global Jewish leaders by the Jewish Telegraphic Agency. He previously served as the political advisor to the deputy foreign minister of Israel and worked for the Israeli Ministry of Defense. Mr. Roman is a frequent speaker at venues around the world, often appears on television, and has written for the Hill, the Forward, the Albany Times-Union, and other publications. He attended American University in Washington, D.C., and the Interdisciplinary Center (IDC) in Herzliya, Israel, where he studied national security studies and political communications.
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