Key Takeaways
- Israeli Finance Minister Bezalel Smotrich has called for a full-scale military operation in the West Bank similar to the campaign in Gaza, drawing sharp condemnation from the Palestinian Foreign Ministry.
- The Palestinian Foreign Ministry labeled Smotrich’s remarks a "blatant call to expand the war of extermination" and an attempt to facilitate the annexation of the occupied territory.
- Israeli airstrikes targeted multiple locations in southern Lebanon on September 27, including the towns of Haris, Khiam, and Bint Jbeil, despite a fragile U.S.-brokered framework agreement.
- Regional tensions are surging as Smotrich also advocated for the annexation of southern Lebanon up to the Litani River and parts of the Gaza Strip.
- Market uncertainty persists in the Levant as the Israeli Defense Forces (IDF) prepare for a "new phase" of fighting, potentially establishing a permanent buffer zone in Lebanese territory.
In a significant escalation of rhetoric, Israeli Finance Minister Bezalel Smotrich has publicly urged the Israeli government to "go to war" in the West Bank, advocating for the dismantling of the Palestinian Authority. Speaking on a podcast for the Ynet outlet, Smotrich stated that Israel must replicate its military strategy in Gaza within the West Bank to "eliminate terror infrastructure." He further proposed the annexation of southern Lebanon and more than 80% of the West Bank, referring to the latter by its biblical name, Judea and Samaria.
The Palestinian Foreign Ministry responded with a scathing statement, warning that Smotrich’s comments represent a "dangerous" policy of displacement and land confiscation. The ministry urged the UN Security Council and the U.S. administration to intervene, arguing that such inflammatory statements undermine any remaining prospects for a two-state solution. They held the Israeli government fully responsible for the potential "instability and violence" that could follow any attempt to dismantle Palestinian national institutions.
Simultaneously, the conflict on Israel’s northern border intensified as the IDF launched a series of airstrikes and artillery barrages across southern Lebanon. On Sunday, September 27, 2026, strikes were reported on the outskirts of Haris (Bint Jbeil district) and the town of Khiam (Marjeyoun district). These attacks occurred despite the June framework agreement intended to facilitate a gradual Israeli withdrawal and the deployment of the Lebanese Army.
The IDF claimed the strikes were necessary to "remove threats" to Israeli troops operating in what it calls a "security buffer zone." Reports from the National News Agency (NNA) indicated that the strikes destroyed residential property in Mayfadoun and Nabatieh al-Fawqa, while heavy machine-gun fire targeted Beit Yahoun. The Lebanese government, led by Prime Minister Nawaf Salam, has denounced these actions at the United Nations, accusing Israel of a "scorched-earth policy" that violates Lebanese sovereignty.
The dual escalation in the West Bank and Lebanon has raised alarms among international observers regarding a broader regional conflagration. With Smotrich’s Religious Zionism party pushing for territorial expansion as a core campaign pillar for upcoming elections, the political pressure on Prime Minister Benjamin Netanyahu to maintain a hardline military stance remains high. Analysts suggest that the continued violation of the U.S.-mediated ceasefire could lead to a total collapse of diplomatic efforts in the region.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.