Israeli Prime Minister Benjamin Netanyahu and Defence Minister Yoav Gallant. Photo: Reuters
The political landscape in Israel was shaken on Monday following reports that Prime Minister Benjamin Netanyahu is considering dismissing Defence Minister Yoav Gallant, leading to a drop in Israeli financial markets and weakening of the shekel, reported Reuters.
According to major Israeli TV channels and news outlets, Netanyahu is under pressure from far-right coalition partners to replace Gallant with former ally turned rival, Gideon Saar, currently an opposition member. Such a move would send shockwaves through Israel’s political and security landscape, especially with the looming threat of conflict with Iran-backed Hezbollah in Lebanon.
The shekel fell by 1%, nearing 3.75 per dollar, while key stock indices in Tel Aviv dropped between 1.4% and 1.6%. This came despite inflation data showing a 3.6% rise in August, which analysts believe will delay interest rate cuts.
Netanyahu denied negotiations with Saar but did not address his plans for Gallant. Saar also denied talks with the coalition.
Netanyahu and Gallant at Odds
Netanyahu and Gallant have clashed over several issues, particularly regarding the handling of the Gaza conflict and potential ceasefire negotiations with Hamas. Opposition lawmakers have criticized Netanyahu for focusing on political maneuvering rather than critical national security matters.
“Instead of focusing on defeating Hamas, rescuing hostages, and addressing the Hezbollah threat in the north, the prime minister is caught up in political scheming and replacing the defence minister,” wrote centrist lawmaker Benny Gantz on social media.
Police Minister Itamar Ben Gvir, a leading figure in Netanyahu’s coalition, has long called for Gallant’s removal, arguing that he is unfit to handle potential escalations with Hezbollah in the north.
In March 2023, Netanyahu previously attempted to fire Gallant after he opposed a controversial judicial overhaul, sparking mass protests and forcing Netanyahu to backtrack.
