Ceasefire deal with Hamas is not a strategic victory for Israel, economy minister says

The recently brokered ceasefire deal between Israel and Palestinian militant group Hamas isn’t a “strategic” win for the Jewish state, Israeli Economy Minister Nir Barkat told CNBC.

Announced last week, the agreement has so far seen the release of Israeli hostages in exchange for Palestinian prisoners and will, if honored by all parties, continue to see captives freed and bring an end to the devastating 15-month war between the two adversaries.

Still, speaking at the World Economic Forum, Israeli Economy Minister Nir Barkat told CNBC’s Dan Murphy on Tuesday: “I don’t think it’s a strategic victory. A strategic victory is to bring peace to the Middle East.”

He added that such an outcome would involve Hamas’ historical ally Iran not achieving what Barkat described as Tehran’s goal to “wipe Israel off the map.”

“We need to make sure they never have that. There are fingerprints of Iran all over our region, all over Oct. 7,” the minister said, referring to the Hamas-led attack in 2023 that killed roughly 1,200 in Israel and took more than 200 hostages.

“We must make sure they pay a heavy price for that,” he added, saying Israel must also pursue the “jihadists” in Lebanon, the Gaza Strip and “all over the world,” as well as expand the Abraham accords — a set of agreements to normalize Arab–Israeli relations.

“This would be a strategic victory,” Barkat said.

Israel’s relentless bombardment of Gaza in response to the Oct. 7 Hamas attack, and its severe limiting of food and aid supplies into the blockaded enclave, has killed more than 46,000 Palestinians in the strip, according to local health authorities.

The United Nations and World Health Organization, along with several other international aid bodies, have described the situation in Gaza as a “humanitarian catastrophe” as the destruction of hospitals and critical infrastructure worsen hunger and disease on the ground.

Since the ceasefire was agreed, the amount of aid heading into the enclave has increased.

Israel’s economy minister expressed optimism about newly inaugurated U.S. President Donald Trump’s administration, suggesting his leadership will be better for Israel than that of his predecessor Joe Biden.

“President Biden, which we thank him for his help, was restraining Israel … President Trump is supporting Israel,” Barkat said. He described Trump as presenting a path that is more aggressive toward Iran and more supportive of expanding the Abraham Accords, which he brokered in his previous term.

“I believe that’s the right attitude in the Middle East. You’ve got to be very aggressive with the bad guys and good with the good guys,” he said. “And, mind you, that the peace that we have with our neighbors — with Egypt, 40 years and with Jordan, 25 years — the Abraham accord, four years [since 2020] stuck through this round of violence. They understand that we collaborate.”

The Biden administration provided Israel with $17.9 billion in military aid in the year since Oct. 7, 2023, according to a report for Brown University’s Costs of War project published in October 2024.

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