Israel's Netanyahu Fires Defense Minister Gallant Over Lack Of Trust in War Management, Oil Prices Rise As US Election Results Loom

On a day when global attention focused on the U.S. presidential election, Israeli Prime Minister Benjamin Netanyahu announced the dismissal of defense minister Yoav Gallant, amid a crisis of trust over differences in managing Israel's war efforts in Gaza.

Gallant, who had held the defense minister post since 2022, has been a key figure in Israel’s response to the ongoing conflicts against Hamas and Iran-backed Hezbollah.

According to Netanyahu’s remarks, the relationship between the two deteriorated in recent months, fueled by what the prime minister described as significant gaps in their approach to the war effort.

See Also: Emmanuel Macron Has Sharp Words For Israel’s PM: ‘Mr. Netanyahu Must Not Forget That His Country Was Created By A UN Decision’

"I tried to bridge these gaps, but they kept getting wider," Netanyahu said in a statement. He argued that the trust issues had become "public domain," a development that he claimed was exploited by Israel's adversaries.

Gallant, for his part, responded to the firing on X, formerly known as Twitter. He expressed unwavering commitment to Israel's safety.

"The security of the State of Israel was and will always remain the mission of my life," he wrote.

ביטחון מדינת ישראל היה ותמיד יישאר משימת חיי 🇮🇱🇮🇱

— יואב גלנט – Yoav Gallant (@yoavgallant) November 5, 2024

In place of Gallant, Netanyahu has appointed Israel Katz, a seasoned politician who has held multiple cabinet positions, including minister of foreign affairs, minister of finance, and minister of intelligence.

“He is known as a bulldozer with a combination of responsibility and firmness, quiet firmness, and all of these are very important for managing the campaign,” Netanyahu said about Katz.

Additionally, Netanyahu revealed discussions with minister without portfolio Gideon Sa'ar, inviting him to join the coalition as Foreign Minister.

Market Reactions: Oil, Israeli Stocks Rise

News of Gallant's dismissal and the internal discord in Israel's wartime leadership had a marginal impact on financial markets, with traders fully focused on the upcoming results from U.S. elections.

West Texas Intermediate (WTI) light crude, tracked by the United States Oil Fund USO, was 0.6% up to $72.2 a barrel as of 3:10 p.m. ET on Tuesday, holding earlier gains during the session and marking its second consecutive day in the green.

Israeli stocks saw a slight boost Tuesday, with the VanEck Israel ETF ISRA climbing 0.8%.

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