Biden Shifts Stance On Israel, Calls For Netanyahu's Government To Pivot; IDF Floods Gaza Tunnels With Seawater

Tuesday brought significant developments in the Israel-Hamas conflict, with President Joe Biden issuing a warning to Israel. He expressed concern that Israel’s government is beginning to lose international support due to the latest military operations conducted by the Israeli Defense Forces (IDF).

The ongoing conflict between Israel and Hamas, now in its 67th day since the Hamas attacks on Oct. 7, has witnessed a series of key developments in the past few hours.

• Biden’s Change of Tone: Speaking to his 2024 campaign donors, Biden criticized Israel’s “indiscriminate” bombing in Gaza and urged Prime Minister Benjamin Netanyahu to reconsider his government’s approach, as Reuters reported Tuesday. Biden is set to meet with families of Americans taken hostage by Hamas during the Oct. 7 attack.

• Global Response and Diplomatic Efforts: U.S. National Security Adviser Jake Sullivan is scheduled for talks with Israel's war cabinet. Australia, Canada, and New Zealand have expressed their support for a sustainable ceasefire, underlining the growing global response to the civilian suffering in Gaza.
  

• An Inflection Point? As noted by Al Jazeera political analyst Marwan Bishara, Biden’s altered stance may have significant implications, likely representing an “inflection point” in the war. This is the first instance of an explicit U.S. demand for a change in Israeli policy. However, Bishara believes that Biden’s move is “a bit too little, too late perhaps.” 
  
• Israel Injects Seawater Into Tunnels: The Israeli military’s tactic of flooding Gaza's tunnels with seawater, as reported by the Wall Street Journal, has sparked concerns. Critics argue this could compromise Gaza's freshwater supply. This tactic, aimed at disrupting Hamas’s operations, is part of Israel’s broader military strategy. The tunnels are reportedly used by Hamas for various military purposes, including housing hostages and storing weapons. Some officials in the Biden administration are wary of the effectiveness and potential ecological impact of the seawater strategy.
  

• Congressional Dynamics: As Al Jazeera reported, Rep. Steny Hoyer (D-MD) has made an urgent call for the passage of aid packages for Israel and Ukraine, stressing the limited legislative timeframe and criticizing House Republicans for complicating the process with domestic policy issues. With only two legislative days left before the holiday recess, Hoyer calls for an immediate, unconditional support for these U.S. allies.
  
• Market Reactions: Israeli assets were little moved on Tuesday. The shekel fell 0.2% against the dollar, but keeps trading in a tight range. Stocks as tracked by the iShares MSCI Israel ETF EIS were 0.1% higher. Cathie Wood’s tech-heavy ARK Israel Innovative Technology ETF IZRL fell 0.2%.

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