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Violence on Israeli Streets Sows Fear of Lasting Rupture - The New York Times

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A building that was hit by a rocket fired from the Gaza Strip overnight in Petah Tikva, Israel, on Thursday.
Dan Balilty for The New York Times

Clashes between Arab and Jewish mobs on the streets of Israeli cities have given way to warnings from Israeli leaders that the decades-old conflict could be careening toward a civil war. Prime Minister Benjamin Netanyahu described the scenes of arson and violence as “anarchy” and appealed for an end to “lynchings.”

When Mr. Netanyahu visited the town of Lod, a mixed Jewish-Arab city, on Thursday, he said that the violence there was motivated by nationalistic rioters and that soldiers from the Israel Defense Forces could be brought in. The military called up 7,000 reservists and canceled leaves for all combat units.

“There is no greater threat now than these riots, and it is essential to bring back law and order with these means,” he said. Riot control measures such as water cannons and administrative arrests may also be used, he said. The police have put strict measures in place in Lod, limiting entry into the city from 5 p.m. and instituting an 8 p.m. curfew.

A day earlier, he had called the violence “unacceptable” and said, “Nothing justifies the lynching of Jews by Arabs, and nothing justifies the lynching of Arabs by Jews.”

Israel carried out more airstrikes against Hamas targets in Gaza, where the death toll rose on Thursday to 83 people since the fighting began early this week, according to the Gaza health ministry. Palestinian militants fired volleys of rockets from Gaza — some 1,800 in three days — that reached far into Israel, where seven have died since Monday.

Early Friday, Israel added ground forces to its assault on Gaza, an escalation of the violence.

Hatem Moussa/Associated Press

Alongside those now-familiar scenes, Jewish and Arab citizens have clashed in the worst violence in decades in Israeli cities — stoning cars, burning offices and places of worship, and forming mobs that have dragged people from their vehicles and beat them to within an inch of their lives.

Several Israeli leaders, led by President Reuven Rivlin, evoked the specter of civil war — a once unthinkable idea.

“We need to solve our problems without causing a civil war that can be a danger to our existence, more than all the dangers we have from the outside,” Mr. Rivlin said. “The silent majority is not saying a thing, because it is utterly stunned.”

Palestinian leaders, however, said the talk of civil war was a distraction from what they see as the true cause of the unrest — police brutality against Palestinian protesters and provocative actions by right-wing Israeli settler groups.

“The police shot an Arab demonstrators in Lod,” said Ahmed Tibi, the leader of the Ta’al party and a member of Israel’s Parliament, referring to the mixed Arab-Jewish city in Israel where some of the worst clashes occurred. “We don’t want bloodshed. We want to protest.”

Gaza militants and Israeli forces have been trading attacks for days now, ever since a police raid at a Jerusalem mosque atop a site revered by both Muslims and Jews.

The Israeli border police have been deployed in Arab and mixed Arab-Jewish cities in Israel, and Defense Minister Benny Gantz ordered more of the forces into the streets on Thursday after another night of unrest.

Ammar Awad/Reuters

In one seaside suburb south of Tel Aviv, dozens of Jewish extremists took turns beating and kicking a man presumed to be Arab, even as he lay motionless on the ground. To the north, in another coastal town, an Arab mob beat a man they thought was Jewish with sticks and rocks, leaving him in a critical condition. Nearby, an Arab mob nearly stabbed to death a man believed to be Jewish.

Tamer Nafar, a Palestinian rapper considered one of the symbols of Lod mourned the terrible rupture inside the community.

“Maybe we look at the word coexistence differently,” he said. “But so far there is only one side, the Jewish side.”

The Aqsa raid might have been the spark for the current round of hostilities, but the fuel was years of anger from Israel’s Arab minority, who make up about 20 percent of the population. They have full citizenship, but rights advocates say they are victims of dozens of discriminatory regulations.

“The way that we are treated is as though we shouldn’t be here,” said Diana Buttu, a Palestinian political analyst from Haifa, a city in northern Israel.

An explosion lights the sky Thursday in the northern Gaza strip following an Israeli air strike.
Hosam Salem for The New York Times

Israel said its military ground forces had attacked Gaza early Friday, a major escalation of violence between Palestinians firing rockets into Israel and Israeli forces carrying out airstrikes in Gaza.

The extent of the Israeli assault was not clear. Two hours after it began, the Israel Defense Forces clarified that while ground forces were newly involved in the fighting, no Israeli troops were actually in Gaza, indicating that they were firing from within Israel.

“I said that we would charge a very heavy price from Hamas and the rest of the terrorist organizations,” Prime Minister Benjamin Netanyahu said in a statement released shortly after the offensive began. “We are doing this and we will continue to do so with great force. The last word was not said and this operation will continue as long as it takes to restore peace and security to the State of Israel.”

In the past, most Israeli attacks in Gaza have been limited bids to wipe out places where weapons were stored or launched, or to kill leaders of Hamas, the militant group that controls Gaza, or other factions. But in 2014, it invaded the territory with ground forces, a campaign that lasted seven weeks.

News of the new phase of fighting was announced by the Israeli Defense Forces with a one-line tweet at 12:22 a.m. (5:22 p.m. Thursday on the East Coast of the United States): “IDF air and ground troops are currently attacking in the Gaza Strip.”

An Israeli military spokesman, Lt. Col. Jonathan Conricus, confirmed that “There are ground troops attacking in Gaza, together with air forces as well.”

Hours earlier, Israel had called up 7,000 military reservists and canceled all leaves for troops in combat units, leading to speculation that an escalation was imminent.

The assault came as the United States and others were urging a diplomatic resolution of violence that began on Monday, set off by a clash between Arab worshipers and Israeli police at the Aqsa mosque, one of the holiest sites in Islam.

Rockets launched toward Israel from the Gaza Strip on Friday.
Anas Baba/Agence France-Presse — Getty Images

Palestinian militants have fired some 1,800 rockets from Gaza at Israel this week, far more than in previous clashes, according to Israeli officials, who on Thursday expressed surprise at the size of the barrage and the range of some of the rockets.

Israel’s “Iron Dome” antimissile system has shot down many of the rockets, and many others have struck places where they could do little damage. But some of the rockets, which are unguided, have hit populated areas, blowing up buildings and cars and killing seven people in Israel.

The increasingly sophisticated arsenal of rockets is the primary weapon of Hamas, the militant group that controls Gaza. Other groups there, like Islamic Jihad, also have them. Israeli intelligence estimates there are 30,000 rockets and mortar projectiles stockpiled in Gaza.

Hamas was believed before this week to have rockets with ranges approaching 100 miles, and many more with shorter ranges. Israel’s largest cities, Jerusalem and Tel-Aviv, as well as its primary airport, Ben Gurion airport, are within 40 miles of Gaza. The airport has been closed to incoming passenger flights because of the danger, with flights diverted to Ramon airport to the southeast.

But rockets have also been fired at Ramon, more than 110 miles from the nearest part of Gaza. A Hamas spokesman said the rockets aimed at that airport were a new type that could travel 155 miles, putting all of Israel within range of Gaza. The claim could not be verified, and it was not clear how many of the new rockets the group had.

In the past, many of the rockets fired from Gaza were smuggled in from Egypt, or assembled locally from smuggled parts. But in recent years, most have been made in Gaza, with technical assistance from Iran that Hamas has openly acknowledged.

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Fighting has broken out in the streets between Israeli Jews and members of the Arab minority with warnings from Israeli leaders that the conflict risks spiraling out of control.Dan Balilty for The New York Times

LOD, Israel — The hulks of burned out cars and trucks litter the streets of the mixed Arab-Jewish town of Lod, the epicenter of three nights of violence inside Israeli cities that have fed fears the country could be careening toward a civil war.

When the violence spread on Monday from the Aqsa Mosque in Jerusalem to Gaza, an uneasy coexistence in Lod, deep inside central Israel, abruptly ruptured.

The authorities have declared a state of emergency in the town of about 80,000 people and imposed a night curfew from Wednesday. Armed border police officers, brought in from the occupied West Bank, were deployed.

But the curfew did little to calm the atmosphere, and both Jews and Arabs described a terrifying night on Wednesday. Arab residents, who account for about 30 percent of the town’s population, continued a campaign of stone-throwing, vandalism and arson, while Jewish extremists came from outside Lod and burned Arab cars and property.

On Thursday morning, a Jewish man was stabbed as he walked to synagogue, but he survived.

Shirin al-Hinawi, a 33-year-old Arab resident of Lod who works for the Israeli food company Osem, said her house was charred when rioters threw a Molotov cocktail into her yard on Wednesday night. She lamented that the police did not come to protect her family.

“We ran out of the house without clothes on. It was burning,” she said. “We are not living in Gaza. I’m an Israeli citizen, and we didn’t do anything,” she said with tears in her eyes.

The latest eruption of Israeli-Arab warfare bears many of the hallmarks of past conflicts: round after round of Israeli airstrikes on Palestinians in the Gaza Strip and salvos of rockets fired from Gaza into Israel. But this time, a distinctly different type of violence has spilled over into Israeli cities, some of them with mixed Jewish and Arab populations living closely intertwined lives.

It was this unusual outburst of street clashes inside Israel that prompted the president to warn of a civil war and the prime minister to call for an end to “lynchings” by Arab and Jewish mobs that have run amok.

Ramat Eshkol, a hardscrabble neighborhood near the old quarter of Lod, has been one of the hottest flash points of violence in the city. A community of young Orthodox Jews moved there in recent years. Many of them live with Arab neighbors in shared apartment buildings. Israeli flags flying out the windows mark some of the Jewish apartments.

Arab youths in Lod, inflamed by the clashes at the Aqsa compound in Jerusalem and by a long history of discrimination and generations-old fear of displacement, began protesting on Monday night outside a mosque in the old quarter and were dispersed by police who used stun grenades and tear gas, residents said.

That ignited a broader flare-up that then spread to other mixed Jewish-Arab towns and cities in Israel.

By the end of the night on Monday, an Arab man was fatally shot when dozens of stone-throwing protesters approached a building with Jewish residents. Since then, at least four synagogues have been burned as well as a religious school and a military training academy.

Yousef Ezz, a 33-year-old Arab truck driver from Lod, said his truck was burned on Wednesday night.

“People have lost all their faith. This is their last stop,” he said. “I will live and die here and my children will live or die here.”

Tahael Harris, a 27-year-old Jewish woman who lives in a shabby building with a mix of Arab and Jewish citizens opposite the school that was burned, said that for the last three nights, she and her husband and two children have been holed up at home behind locked doors while mobs of Arabs were setting cars on fire and throwing stones.

On Wednesday night, the violence ramped up and the family heard live gunfire.

“There is a feeling it’s only getting worse,” she said. “Before, it was quiet, not perfect, but we were good neighbors. I don’t know where they were last night. I don’t want to ask because I’m scared to hear the answer,” she said, fearing her own neighbors were among the attackers.

Palestinian Muslims performing Eid al-Fitr prayers in the Aqsa Mosque compound in the Old City of Jerusalem on Thursday.
Mahmoud Illean/Associated Press

Muslims around the world marked the end of the holy month of Ramadan on Thursday, a day typically filled with prayer, celebration and feasting. But for many Palestinians, the moment was a somber one amid escalating clashes with Israel that have killed scores in just a few days.

Tens of thousands of worshipers gathered at the Aqsa Mosque compound in Jerusalem at dawn to mark Eid al-Fitr, days after Israeli forces clashed with Palestinians there in one of the triggers to the current round of violence. That episode quickly spiraled into a deadly conflict as Palestinian militants in Gaza fired rockets and Israel carried out airstrikes on the territory.

The Aqsa Mosque is one of the holiest sites in Islam, located in a complex in the Old City of Jerusalem that is revered by Muslims, Jews and Christians. On Wednesday, tens of thousands of worshipers stood in lines and then bowed in prayer.

Some waved Palestinian flags and a banner showing an image of Ismail Haniyeh, the leader of Hamas, the Islamist group that rules the Gaza Strip. Across the region, in prayers in Jordan and Turkey, some of those gathered to mark Eid waved Palestinian flags in solidarity.

In Gaza, days of Israeli airstrikes had killed more than 80 people by Thursday morning, according to Palestinian health officials. At least six Israelis have been killed by rockets fired from Gaza into Israel by Hamas militants and their allies.

In one photo from Gaza on Thursday, three Palestinian men laid their mats alongside buildings that had been destroyed by recent airstrikes and bowed in prayer as the sun rose over the crumbling heap of concrete and tangled metal.

Elsewhere in Gaza, funerals were held throughout the morning for those killed in the strikes.

Deadly violence between Palestinians and Israel continued to take a toll on Thursday, including clashes in city streets, in what Prime Minister Benjamin Netanyahu described as “anarchy.”

The nearly deserted Ben Gurion airport in Lod, near Tel Aviv, on Thursday.
Gil Cohen-Magen/Agence France-Presse — Getty Images

Airlines in Europe canceled flights to Israel on Thursday as violence in the Middle Eastern nation escalated, and arriving flights were being diverted to Ramon International Airport in southern Israel.

Airlines in the United States had begun canceling flights on Wednesday.

British Airways said it had canceled its flights between London and Israel on Thursday. “The safety and security of our colleagues and customers is always our top priority​, and we continue to monitor the situation closely,” the airline said in a statement.

Lufthansa, the German airline, said it was suspending flights to Israel until Friday. Virgin Atlantic said it had canceled its service between London and Tel Aviv on Thursday morning. And the Spanish airline Iberia canceled its flight to the city on Thursday from Madrid, Reuters reported.

Flights arriving in Israel that would typically land at Ben-Gurion Airport, about 12 miles southeast of Tel Aviv, were being diverted to Ramon Airport, Israel’s second-largest international airport, the Jerusalem Post said.

El Al Airlines, the Israeli national airline, confirmed on its website that most of its incoming flights would land at Ramon airport, in the south of Israel, instead of Ben-Gurion. Outgoing flights were still due to leave from Ben-Gurion, El Al said on its website. It said on Wednesday that customers with travel booked before May 19 would be able to reschedule without being subject to fees.

United Airlines, American Airlines Delta Air Lines canceled flights to and from Tel Aviv on Wednesday, and in some cases waived change fees for customers with planned trips through May 25.

Israeli soldiers near the border between Israel and Gaza on Friday.
Amir Cohen/Reuters

As United States and Egyptian mediators headed to Israel to begin de-escalation talks, the antagonists were weighing delicate internal considerations before agreeing to discussions on ending the violence.

But even before the mediators got to work, Israel’s caretaker prime minister, Benjamin Netanyahu, appeared to have calculated that brute force was required first.

Early Friday, Israeli ground troops shelled Gaza — a potentially major move of escalation against the Hamas militants who have been launching hundreds of rockets at Israel.

For the Palestinians, the indefinite postponement of elections last month by the Palestinian Authority president, Mahmoud Abbas, created a vacuum that Hamas is more than willing to fill. Hamas argues that it is the only Palestinian faction that, with its large stockpile of improved missiles, is defending the holy places of Jerusalem, turning Mr. Abbas into a spectator.

President Biden has spoken to Mr. Netanyahu and repeated the usual formula about Israel’s right to self-defense. The American leader also dispatched an experienced diplomat, the deputy assistant secretary of state Hady Amr, to urge de-escalation on both sides.

The Biden administration has resisted calls at the United Nations Security Council for an immediate discussion of the crisis, arguing that Mr. Amr and other diplomats need at least a few days to work toward a possible solution.

A proposal to convene an urgent meeting on Friday by the 15-member council was effectively blocked by the United States, diplomats said. Criticism of Israeli policies toward the Palestinians is widespread among members of the United Nations, and the United States has often stood alone in defending Israel, its key Middle East ally.

In Washington, Secretary of State Antony J. Blinken, when asked about American objections to a Security Council meeting, told reporters on Thursday that “we are open to and supportive of a discussion, an open discussion, at the United Nations,” but wanted to wait until early next week.

“This, I hope, will give some time for the diplomacy to have some effect and to see if indeed we get a real de-escalation,” Mr. Blinken said.

The United States Embassy in Jerusalem in 2018.
Valery Sharifulin\TASS, via Getty Images

The United States Embassy in Jerusalem has warned its staff members and their families to stay close to home or near bomb shelters because of the heightened threat of rocket attacks from Palestinian militants in Gaza, barely 40 miles away.

The warning, issued on Wednesday and posted on the embassy’s website, came as the crisis engulfing Israel and the Palestinian territories escalated to the most violent in years.

“Rockets continue to impact the Gaza periphery and areas across Southern and Central Israel,” read the alert. It advised diplomats and their relatives to remain in safe surroundings at least until May 17.

About 120 U.S. military personnel — both soldiers and civilian employees of the Defense Department — who were in Israel for military exercises were flown out of the country on Thursday, the Pentagon said. The withdrawal did not affect service members or other government employees, including embassy staff, who are usually assigned to Israel.

The embassy itself is contentious, having been moved to Jerusalem from Tel Aviv by President Donald J. Trump three years ago over the strenuous objections of the Palestinians, who saw the change as an endorsement of Israel’s claim to the entire city as its capital. Israel captured the eastern part of the city in the 1967 war, and its occupation is not internationally recognized.

The Palestinians want East Jerusalem as their capital under a long-proposed two-state solution to the conflict. Most foreign embassies in Israel remain in Tel Aviv, partly because of Jerusalem’s disputed status.

While the Biden administration has pledged a more evenhanded approach to the Israeli-Palestinian conflict than that of its predecessor, which heavily favored the Israeli side, there is no expectation the embassy will be moved back to Tel Aviv.

The embassy was part of a jarring juxtaposition when it held a celebratory opening on May 14, 2018. While Mr. Trump’s daughter Ivanka and other American officials were toasting the relocation, Israeli soldiers and snipers were using tear gas and live gunfire to drive back hundreds of Palestinian demonstrators on the Gaza side of the border.

Several Islamist terror organizations take their name from Al-Aqsa, a holy site in Jerusalem.
Ahmad Gharabli/Agence France-Presse — Getty Images

Instagram removed some posts and restricted access to other content that used hashtags related to the Aqsa Mosque in Jerusalem after mistakenly associating the name with a terrorist organization, according to an internal company message.

The error, acknowledged by Facebook, which owns Instagram, added a new irritant to the crisis roiling Jerusalem and spreading elsewhere in Israel and the occupied territories. The crisis began over an Israeli police crackdown around the mosque, which is built atop a site holy to Muslims and Jews.

Facebook said in the message that while “Al-Aqsa” often refers to the mosque, “it is also unfortunately included in the names of several restricted organizations.” Although the company did not identify those groups, the State Department has designated the Aqsa Martyrs Brigade as a foreign terrorist organization, and several other groups with “Al-Aqsa” in their names have had sanctions imposed on them by the United States.

As a result, the company said, some content related to the Aqsa Mosque was mistakenly removed or restricted.

“I want to apologize for the frustration these mistakes have caused,” a Facebook employee who works on the issue of “dangerous organizations” wrote to employees in an internal message that Facebook shared with The New York Times. “I want to reaffirm that these removals are strictly enforcement errors. We understand the vital importance of the Al-Aqsa mosque to Palestinians and the Muslim community around the world.”

The restrictions, previously reported by BuzzFeed News, had fueled criticism that Instagram and other social media platforms were censoring Palestinian voices after a raid by the Israeli police on the mosque left hundreds of Palestinians and a score of police officers wounded.

Facebook’s internal message said the company was making changes to ensure that the term “Al-Aqsa” by itself does not prompt restrictions or removals.

“These mistakes are painful, erode the trust of our community and there is no easy fix for that,” the Facebook employee wrote. “While I cannot promise that future errors will not occur — I can promise that we are working earnestly to ensure that we are not censoring salient political and social voices in Jerusalem and around the world.”

Twitter, which had also been accused of unfairly blocking Palestinian content, said in a statement that it used a combination of technology and people to enforce its rules.

“In certain cases, our automated systems took enforcement action on a small number of accounts in error through an automated spam filter,” Twitter said in a statement. “We expeditiously reversed these actions to reinstate access to the affected accounts.”

President Biden condemned the rocket attacks on Israel and said the United States’ position was that Jerusalem should be “a place of peace.”
Doug Mills/The New York Times

President Biden said that he had spoken with Prime Minister Benjamin Netanyahu of Israel “for a while” on Wednesday amid escalating fighting between Israelis and Palestinians, and asserted his “unwavering support” for Israel’s “right to defend itself.”

“My hope is that we will see this coming to a conclusion sooner than later,” Mr. Biden said in response to questions from reporters.

According to a readout of the call released by the White House, Mr. Biden “condemned” the rocket attacks on Israel and added that the United States’ position is that Jerusalem be “a place of peace.”

On Thursday, the White House again framed the conflict in terms of attacks carried out by Hamas, and refrained from criticizing Israel.

“I think it’s important to note, I think you’d agree, that these rockets are coming, and these attacks are coming from Hamas and many Palestinian people are being put in danger because of the violence that is happening back and forth,” said Jen Psaki, the White House press secretary.

In the call on Wednesday with Mr. Netanyahu, Mr. Biden said that his administration’s national security and defense officials had been and would stay “in constant contact” with their counterparts in the Middle East.

The White House added that during the phone call Mr. Biden had updated Mr. Netanyahu on the United States’ diplomatic engagement with Palestinian officials and other nations in the Middle East.

The call between the two leaders came on the same day that Secretary of State Antony J. Blinken spoke over the phone with Mr. Netanyahu.

Defense Secretary Lloyd J. Austin III on Wednesday offered “ironclad support” for Israel’s self-defense in a phone conversation with Benny Gantz, Israel’s defense minister.

Prime Minister Benjamin Netanyahu of Israel declared a state of emergency in the city of Lod on Wednesday. His political opponents blame him for the rising violence.
Ahmad Gharabli/Agence France-Presse — Getty Images

JERUSALEM — When it’s guns doing the talking, Israel’s usual political clamor typically shushes up.

This time? It’s differAs the conflict with Gaza inflicted more death on Wednesday, a political rival of Benjamin Netanyahu blamed the prime minister for the escalating violence and said he was working to replace him.

Early Friday, Israel escalated the conflict even more, adding ground troops to its assault against Gaza.

“I said that we would charge a very heavy price from Hamas and the rest of the terrorist organizations,” Mr. Netanyahu said in a statement released shortly after the offensive began. “We are doing this, and we will continue to do so with great force.”

Yair Lapid, the centrist leader of the opposition, said the conflict “can be no excuse for keeping Netanyahu and his government in place. Quite the opposite.” He added, “They are exactly the reason why he should be replaced as soon as possible.”

The crisis, in which dozens have been killed, has occurred at a key moment in Israeli politics.

After Mr. Netanyahu failed to form a government following the fourth elections in two years, Mr. Lapid was given his chance. Yet the bloodshed makes Mr. Lapid’s efforts to forge a coalition government both simpler and more difficult.

On one hand, Mr. Netanyahu’s detractors have even more incentive to oust him. But the violence has highlighted the profound differences between the parties of the anti-Netanyahu camp, which span the political spectrum from left to right.

“If the opposing ideologies meant they had one hand tied behind their back,” said Reuven Hazan, a professor of political science at the Hebrew University of Jerusalem, “now they have both hands tied behind their back.”

Andrew Yang, a candidate for New York City mayor, said early this week that he was “standing with the people of Israel.”
Sara Naomi Lewkowicz for The New York Times

New York City has the largest Jewish population in the world outside Israel. And while the city’s mayor has no formal foreign-policy powers, the position often affords opportunities to showcase New York’s posture toward Israel.

But wholehearted, uncritical support for Israel is no longer automatic among officials or candidates — a dynamic that has been brought to the fore amid the latest Israeli-Palestinian conflict.

Andrew Yang, a leading candidate to be the city’s next mayor, issued a statement early this week saying that he was “standing with the people of Israel who are coming under bombardment attacks, and condemn the Hamas terrorists,” and adding, “The people of N.Y.C. will always stand with our brothers and sisters in Israel who face down terrorism and persevere.”

Then came the backlash.

At a campaign stop, Mr. Yang was confronted about his statement and its failure to mention the Palestinians, including children, who were killed in Israeli airstrikes. He was uninvited from an event to distribute food to families at the end of Ramadan.

Representative Alexandria Ocasio-Cortez, a New York Democrat who has condemned the “occupation of Palestine,” called Mr. Yang’s statement “utterly shameful” and noted that it had come during the Muslim holy month.

Mr. Yang acknowledged that volunteers with his campaign had been upset by his statement. And on Wednesday he released a new one, admitting that his first was “overly simplistic” and “failed to acknowledge the pain and suffering on both sides.”

“I mourn for every Palestinian life taken before its time, as I do for every Israeli,” he said.

His clarification reflects a reality that what was once a given in New York City politics — unquestioning support for Israel — has become a much more complicated proposition for Democratic candidates.

Mihir Desai and

Israeli forces patrolling Acre, a mixed Arab-Jewish town in northwest Israel, on Thursday.
Jalaa Marey/Agence France-Presse — Getty Images

Violence in Israel could have “significant economic repercussions” if it leads to sustained conflict between Jewish and Arab citizens, the Fitch credit ratings agency said Thursday.

The warning from Fitch, whose views influence the interest rates paid by the Israeli government and Israeli corporations, was an indication of how rioting and mob attacks in cities like Lod could undercut the country’s recovery from the economic effects of the pandemic.

Fitch, noting that the Israeli economy has withstood past conflicts, said damage to the government’s creditworthiness would be limited “unless there is a substantial and sustained escalation in violence.”

If persistent strife prompts bond investors to demand higher interest rates on Israeli government debt, borrowing costs for businesses and consumers would also rise and act as a brake on growth.

Fitch and other ratings agencies consider Israeli government bonds to be a relatively safe investment, but the country already pays a premium because of what Fitch called its “hostile geopolitical environment.”

Fitch said that violence involving Arab Israelis, who make up about one-fifth of the population, represents a particular risk. In recent days Jewish and Arab citizens have clashed in the worst violence in decades in Israeli cities, in some cases dragging people from their vehicles and beating them severely.

The violence will make it more difficult for the leading political parties to form a stable government following elections in March that produced a stalemate. And the fighting will hurt the Israeli tourism industry, Fitch said.

The fighting will also hinder Israel from benefiting from better relations with other countries in the region, Fitch said. “The prospect of improved regional relations has receded further with the latest clashes,” Fitch said.

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