Escalation with Hezbollah is likely

The consequences, however, will include severe economic disruption in Israel, the discrediting of the idea of Zionism, and making direct Israeli-Iranian conflict more likely.

Executive Summary

• The coming firing of rockets from Gaza into Tel Aviv will signal either the end of the war, or, more likely, a region-wide much larger war.

• Hamas has resumed intense fighting in northern Gaza as well as firing rockets into the Gaza envelope.

• Israel appears unable or unwilling to clear and hold territory, preferring instead to launch incur…