HEADLINES
Gaza Ceasefire Holds Aid Flows
Israel Warns of War Risk with Hezbollah
Foreign Buyers Flock to Israeli Real Estate

The time is now 2:01 AM in New York, I'm Noa Levi and this is the latest Israel Today: Ongoing War Report.

This is the 2:00 a.m. global update on events shaping the Middle East, with a focus on Israeli and Jewish perspectives for an international audience. In Gaza, a ceasefire remains the central reference point, but security concerns continue to color the landscape. Israel has stated it will guard its security perimeter and respond to any breaches, while international actors press for sustained humanitarian access and structural steps toward long term stability. Observers note that the pause in fighting has allowed aid corridors to operate more freely, but the humanitarian and reconstruction challenges in Gaza persist and political talks over security arrangements, demobilization of armed groups, and conditions for civil life remain unsettled.

In the broader security environment, Israel faces a recalibrated threat assessment centered on Hezbollah and Iran. An Israeli operation that killed a Hezbollah figure, Tabatabai, is cited by some analysts as a significant signal of ongoing hostility and a warning that individual actions can escalate, even as discussions of restraint continue. An important thread in commentary within Israel emphasizes that after October 7, the approach to Hezbollah has shifted: containment alone is no longer the default mindset, but there is also no appetite to “break the rules” in the face of renewed Hezbollah force buildup and Iranian support. The risk remains that a miscalculation could widen the conflict beyond Gaza, drawing in Syria and Lebanon and testing regional and international diplomacy.

Reporting points to Syria and Lebanon as fronts where Hamas and allied groups are trying to reconstitute capabilities. KAN News, among others, has reported on Hamas foundations in Syria and efforts to replenish rocket inventories in southern Lebanon with Iranian guidance and logistical support. The pattern underscores a concern shared by Israel and its supporters: even as momentum toward a ceasefire grows, the region remains capable of rapid escalation if cross-border activity resumes or if external actors intensify support for militant factions.

On the diplomatic and international side, there is renewed attention to the broader peace process and to the prospects for normalization and stability in regional alignments. A papal visit, announced as a return of high-level international engagement, signals the global insistence that faith communities and political leaders alike hold fast to calls for peace and coexistence as a component of regional stability.

Turning to the diaspora and economic dimensions, the post-ceasefire period has seen notable shifts in how the world views Israel. In the wake of the Gaza pause, foreign interest in Israeli real estate has picked up, with buyers from the United States and Europe showing renewed curiosity about properties in Jerusalem and Tel Aviv. Market dynamics, however, remain nuanced. Official data show a cooling trend in Israeli housing prices over the past six months, though price levels and demand vary by neighborhood. A high stock of new housing, coupled with higher borrowing costs, has tempered sales, and the Bank of Israel’s rate cuts earlier in the year have not yet fully steadied the market. The local market continues to face structural constraints: limited buildable land, zoning barriers, and a long-standing need to align supply with population growth. Analysts point to an expected long-term trend of gradual price increases as demand remains driven by natural growth, immigration, and a perception of regional strength, even as rates and currency movements complicate near-term buying decisions. The exchange rate environment, with the shekel affected by dollar...