Reports that Israeli Prime Minister Benjamin Netanyahu is considering firing Defence Minister Yoav Gallant sent shockwaves through the country’s political landscape and financial markets on Monday. The news, which was carried by Israel’s leading television channels and news websites, suggested that Netanyahu was contemplating replacing Gallant with former ally turned rival Gideon Saar, currently a member of the opposition.
The potential move has significant implications for Israel’s security and political stability, particularly given the looming threat of all-out war between Israel and Iran-backed Hezbollah in Lebanon. The shekel weakened 1% to nearly 3.75 versus the dollar, while main Tel Aviv share indices plummeted 1.4% to 1.6%. This decline came despite expectations of an appreciation in the Israeli currency following Sunday’s data showing a higher-than-expected inflation rate of 3.6% in August.
Netanyahu denied negotiations with Saar but refrained from commenting on his plans for Gallant. Saar also denied any talks with coalition members. The tension between Netanyahu and Gallant is not new, with the two having clashed over various government policies, including the handling of the war in Gaza and the terms of a possible hostage release and ceasefire deal with Hamas.
Centrist lawmakers criticized Netanyahu for prioritizing political maneuvering over critical security concerns. “Instead of focusing on victory over Hamas, returning hostages, and addressing the war against Hezbollah, the prime minister is engaged in despicable political dealings,” centrist lawmaker Benny Gantz wrote on social media. Police Minister Itamar Ben Gvir, who heads an ultranationalist party in Netanyahu’s coalition, has been advocating for Gallant’s replacement, citing his inability to effectively address the situation in the north.
Tens of thousands of Israelis have been displaced near the Lebanese border due to daily rocket fire from Hezbollah. Gallant, a decorated general with 35 years of military experience, reaffirmed his commitment to returning residents to their homes and warned that the window for a peaceful resolution was closing. On Monday, he emphasized that military action was the only viable option for achieving this goal.
The potential ousting of Gallant is not without precedent. In March 2023, Netanyahu fired Gallant after he broke ranks with the government over a contentious judicial overhaul plan, sparking mass protests and prompting Netanyahu to backtrack. The current development has raised concerns about the stability of Israel’s government and its ability to address pressing security challenges.
