Israel Today: Ongoing War Report - Update from 2025-09-10 at 12:06

HEADLINES
Doha strike unsettles hostage talks
Palestinian state push freezes Israeli revenues
EU sanctions Israel creates Palestine Donor Group

The time is now 8:00 AM in New York, I'm Noa Levi and this is the latest Israel Today: Ongoing War Report.

At 8:00 AM, here is the latest hourly update on the conflict in Gaza, regional diplomacy, and connected developments around the world.

Diplomacy and hostages in Gaza remain a central focus as a new flare of diplomacy collides with hard realities on the ground. Israeli officials continue to press objectives in Gaza while acknowledging that a path to releasing hostages and ending the war hinges on movements from both Hamas and its international backers. In Doha, an Israeli strike targeting Hamas’ external leadership drew swift and mixed judgments. Hamas claimed none of its senior leaders were killed, while private security briefings in Israel have grown more cautious about marking the operation a decisive success. Families of hostages remain anxious; some fear that the strike could complicate negotiations or trigger retaliatory actions, even as Netanyahu and security advisers emphasize the broader aim of restoring quiet and securing hostage releases. Across the region, international mediation efforts continue, with Qatar hosting mediators and regional powers watching closely for signals about the next steps in a ceasefire and hostage deal.

In a development that shapes the financing backdrop for Gaza’s civilian population, a growing international push toward recognizing a Palestinian state is complicating US negotiations over withheld Israeli revenues. US Ambassador Mike Huckabee said the momentum toward recognition has hardened Israeli positions and left Israel’s transfer of Palestinian revenues—roughly $3 billion in revenues collected on Israel’s side—frozen in place. The Palestinian Authority relies on these funds to pay public employees, and the hold has heightened economic strain in the West Bank and Gaza. While Britain, France, Canada, Australia and Belgium have signaled support for recognizing a Palestinian state at the United Nations General Assembly, the United States has voiced caution, underscoring the desire to pursue a two-state solution through proven diplomacy and security cooperation rather than unilateral steps. The broader point stressed by US officials is that fiscal pressure and political signals from abroad can influence negotiations, even as Israel maintains that security needs and settlement decisions must be weighed carefully in any peace process.

European diplomacy also moved into sharper relief this morning as the European Commission proposes a recalibration of ties with Israel in response to the Gaza war. President Ursula von der Leyen announced a package that would include sanctions on certain Israeli officials and violent settlers, a partial suspension of the EU-Israel association agreement affecting trade preferences, and the creation of a Palestine Donor Group to coordinate Gaza reconstruction. She stressed the humanitarian imperative—an unimpeded flow of aid to Gaza and an immediate ceasefire—while arguing that some recent actions risk undercutting prospects for a two-state solution. Israeli Foreign Minister Israel Sa’ar pushed back, saying Europe’s stance risks echoing Hamas propaganda and stressing that Israel must be able to defend itself and advance its security and humanitarian goals in Gaza. The Commission also signaled that support for Israeli civil society and Holocaust remembrance would continue, separating those channels from political and economic policy instruments that affect trade and collaboration.

On the legal and accountability front, rights groups filed a criminal complaint in Germany against a German-born Israeli soldier accused of involvement in Gaza-related killings. The European Center for Constitutional and Human Rights and several Palestinian...