Israeli finance minister hits out at Netanyahu, says has 'lost faith' in Bibi

Israeli finance minister Bezalel Smotrich has declared that he no longer believes Prime Minister Benjamin Netanyahu can deliver a “decisive victory” in Gaza, days after the security cabinet approved plans to expand the military offensive in the devastated territory.

In a sharply worded video message on Saturday (August 9), the ultranationalist politician accused Netanyahu of reversing course after promising to “go all the way” in the fight against Hamas, and criticised him for keeping the door open to a potential ceasefire-for-hostage deal.

“I remained in government as long as I believed we were driving for decisive victory,” Smotrich said. “I have now lost faith that the prime minister can and wishes to lead the [Israeli military] there,” Financial Times reported him as saying.

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The comments mark the most pointed criticism yet from a key coalition partner. Smotrich, along with national security minister Itamar Ben-Gvir, has long pressed Netanyahu to adopt harder-line policies throughout the 22-month-old war. While he did not threaten to resign, the statement deepened tensions within an already fractured governing alliance.

Cabinet pushes forward on Gaza City takeover

Netanyahu’s security cabinet has ordered the military to prepare for a full takeover of Gaza City, once the most populous urban centre in the enclave. The move would require the evacuation of hundreds of thousands of Palestinians and the creation of new humanitarian aid infrastructure, according to Israeli officials. Military planners have indicated that the operation may be delayed until early October to allow the mobilisation of additional reservists.

Smotrich, who took part in the cabinet deliberations, said the plan amounted to “putting pressure on Hamas to agree to a partial hostage deal” rather than pursuing outright victory. He has advocated for the reoccupation of the entire Gaza Strip, the removal of its two million residents to other countries, and the rebuilding of Israeli settlements.

Zvi Sukkot, a parliamentarian from Smotrich’s Religious Zionism party, told army radio on Sunday that the party could reconsider its role in the coalition and might push for early elections. “I don’t see any point being partner to something that will ultimately send soldiers [into battle] without first knowing what the end result will be,” he said.

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Coalition strains and international backlash

Netanyahu’s coalition includes Likud, two far-right factions, and two ultra-Orthodox parties, the latter having already suspended participation in government over a dispute on military conscription. Despite the growing rifts, analysts doubt snap elections are imminent, noting that the governing bloc is trailing in polls and Religious Zionism risks failing to meet the threshold for re-entering parliament.

Military leaders have reportedly opposed the Gaza City plan, warning it could overextend exhausted troops and jeopardise the lives of the remaining 50 Israeli hostages, of whom about 20 are believed to be alive.

Opposition leader Yair Lapid criticised the expansion of the war, warning that “delusions of conquering the strip” would impose heavy economic costs, including new taxes and cuts to domestic programmes.

Nine Western countries, including the UK, Germany and France, joined the European Union on Saturday in condemning the cabinet’s decision, warning it could worsen Gaza’s “catastrophic humanitarian situation”, endanger hostages, and violate international law.