Israel Today: Ongoing War Report - Update from 2025-11-25 at 11:09

HEADLINES Palestinian economy collapses to 2003 levels E1 demolitions threaten Palestinian state Jenin raid kills alleged hammer attacker The time is now 6:01 AM in New York, I'm Noa Levi and this is the latest Israel Today: Ongoing War Report. Good morning. A broad range of developments this morning touches security, diplomacy, and everyday life across the Middle East and beyond, offering a window into how regional and international actors are balancing conflict, diplomacy, and public pressures. In the Palestinian territories and Israel, a stark reminder of the region’s economic and humanitarian strain comes from a new United Nations assessment. UNCTAD reports that the two-year Gaza war, coupled with ongoing restrictions on movement and access, has driven a collapse in the Palestinian economy unseen in decades. GDP per capita has fallen to levels last seen in 2003, and the territory’s overall economic trajectory ranks among the ten worst globally in recent memory. The West Bank is also experiencing its deepest downturn on record, with restrictions on movement affecting commerce, industry, and livelihoods across sectors. The report underscores that damage to infrastructure and public services has reversed years of socioeconomic progress in the Occupied Palestinian Territory, while highlighting the heavy toll on ordinary people and communities. Beyond the macro numbers, there is fresh concern on the ground in the West Bank. In Al-Eizariya and nearby towns, demolition notices tied to a major settlement project known as E1 threaten hundreds of homes and businesses. The E1 plan, approved by Israel, would connect Jerusalem to Maale Adumim and, supporters say, strengthen the settlements network; opponents warn it would fragment a future Palestinian state and further isolate east Jerusalem from the West Bank. Palestinian residents describe the notices as a direct blow to livelihoods, tourism, and daily life, noting permits for construction are hard to obtain and arguing that the project would squeeze already tight resources. Israeli authorities say demolitions target unlicensed construction and security concerns, while critics say the move amounts to an irreversible shift in land use and demographics in Area C. The broader international reaction has included concern that such steps threaten a contiguous Palestinian state and risk undermining prospects for a negotiated peace. Security developments also dominated in the Israeli context. In Jenin, Israeli forces and intelligence officers carried out a counterterrorism operation that culminated in the elimination of Sultan al-Ghani, the alleged hammer attacker who murdered Gideon Perry in 2024. Overnight, five accomplices were arrested as the operation surrounded the building where al-Ghani was believed to be holed up. Israeli authorities said weapons including a Carlo-style submachine gun, an M16 rifle, explosives, and ammunition were recovered. Officials stressed that security forces will continue to act against those who threaten Israeli civilians and security forces. The incident compounds ongoing efforts by Israeli security services to disrupt attacks and dismantle networks before they can harm civilians. In regional diplomacy and international policy, normalization trends and security concerns continue to intertwine with security calculations. Emirates will restart the Tel Aviv–Dubai route in 2026, a development reflecting the ongoing, if cautious, normalization of ties between Israel and some Gulf states. The restart aims to restore pre-pandemic passenger and cargo capacity on a route once dominated by wide-body services, signaling continued interest in economic and people-to-people links across the region. Tensions and strategic calculations extend into the broader Middle East and the Gulf. Reports from Tehran and other capitals say Iran’s hand in Yemen is shifting toward more direct management of the conflict. Iranian officials have described the Houthis as having “gone rogue” and no longer taking directions from Tehran, a claim that underscores fraught lines of influence and the risk of miscalculation in a region already shaped by competing agendas. Observers note that escalations in April, following a period when Iran did not respond to intense US strikes, may be the opening of a more overt posture by Iran over Yemen and potentially neighboring security dynamics. The implications for regional security, including maritime corridors and ceasefire arrangements, remain a central point of attention for international observers and policymakers. Iran’s broader posture continues to draw international attention. A separate report discusses what some see as Iran’s strategic calculus in Yemen, and an accompanying narrative points to the reinstatement of direct oversight over its regional activities. Analysts warn that such moves could extend tensions beyond Yemen and into wider regional security, affecting diplomatic alignments and the costs of conflict for civilian p