On The Hour – May 26, 2026 | NEW GULF BATTLE: U.S. Strikes Iran as War Threat Escalates

Added: 2026-05-26

[00:00:00]Welcome back to ILV on the hour. I'm KB David coming to you live from Israel with all the top headlines from the region and beyond. It is 2 p.m. here in Israel. It's 700 a.m. in New York City.

[00:00:15]And here are the latest developments.

[00:00:17]And there are some dramatic new developments overnight in the Gulf. Just hours after Iranian negotiators arrived in Qatar for talks aimed at ending the war, the US carried out new strikes against targets inside Iran. According to US officials, American forces targeted missile launch sites along Iran's southern co Gulf Coast as well as Iranian boats allegedly attempting to deploy naval mines. US Central Command Sentcom described the operation as a defensive action designed to protect American troops from threats posed by Iranian forces during this fragile ceasefire. Now, the strikes come as diplomatic efforts continue in Qatar to reach a broader agreement between Washington and Tyrron to end the conflict. Now, despite new American strikes inside Iran, the US Secretary of State Marco Rubio says a deal with Iran could still be reached within days. This speaking to reporters during a visit to India where Rubio said the talks were continuing in Qatar and that negotiators were still working through the language of an initial agreement. He added the process will take a few days and President Trump remains committed to reaching a good agreement with Tehran.

[00:01:31]>> Well, look, I think our position is well stated. The president had a very important, I think, historic call just a couple days ago with a number of leaders from the region. I think there's strong alignment and agreement on what a preliminary draft should look like. I think like anything with something like this, and it's going to take a couple days uh to settle on even down to the disagreements over a word uh sentence.

[00:01:54]So, we'll have to work through that. If there's going to be a deal, we're going to have to work through that. But, this is uh you know, it's either going to be a good deal or there isn't going to be one.

[00:02:03]Meanwhile, Iran's new supreme leader Mushtah Kamayi, though he is still out of sight, released a statement on his telegram channel threatening US forces in the region. Kami wrote, "The nations and lands of this region will no longer serve as shields for American bases." He also praised Hisba and called Israel a cancerous tumor in its final stages.

[00:02:28]Well, also speaking out was US President Donald Trump using his Memorial Day address at Arlington National Cemetery to pay tribute to American troops killed during the war with Iran while repeating his vow that tan will never have a nuclear weapon. Speaking during the Memorial Day ceremony, Trump honored the 13 US service members killed during Operation Epic Fury, the American campaign against Iran. In Operation Epic Fury, we lost 13 wonderful souls, wonderful, special people. These incredible men and women gave their lives to ensure that the world's number one state sponsor of terror will never have a nuclear weapon. Oh, and they won't. They will never have a nuclear weapon. I'm sure you I'm sure you know that.

[00:03:13]And here in Israel, Prime Minister Benjamin Netanyahu says he has ordered the IDF to press the pedal even harder against amid a surge in drone attacks from Lebanon. Now, the comments came after a US official signaled that Washington would support a broader Israeli military action against the Iranbacked terror group following the recent drone attacks on northern Israel.

[00:03:37]Well, the prime minister accuses Buller of increasing its use of explosive and cyber enabled drones against Israeli targets, saying a special team is working to counter the threat.

[00:04:15]and Netanyahu's comments as the IDF struck more than 70 Hispera infrastructure sites across Lebanon over the past day using more than 85 munitions in a wide series of air strikes. According to the IDF, the strikes targeted multiple areas in Lebanon, including the city of Tier, where approximately 10 Hisbollah headquarters, weapon storage facilities, and other terror infrastructure sites were hit. The IDF also confirming additional air strikes against Hisba infrastructure in the Becca Valley and other regions of Lebanon as Israel escalates its operations. Yesterday, an explosive drone launched from Lebanon struck the roof of a home in Matula, causing damage, but no injuries. Sirens warning of hostile aircraft intrusion were activated today in several northern communities as Isba continues to deploy FPV or firsterson view kamicazi drones targeting IDF positions and border towns.

[00:05:12]And turning now to Gaza, the IDF announced the elimination of a key Hamas terrorist operating a center for producing weapons for the terror group.

[00:05:20]According to the military, IDF forces carried out a precise strike Sunday in central Gaza, targeting Muhammad Abu Malook, described as a key figure in Kamas's weapons production network. The IDF said Abu Malook served as a key knowledge hub for Hamas during the ceasefire period, continuing to manufacture weapons posing a threat to IDF troops in Gaza and to Israeli civilians. The RDF says steps were taken before the strike to reduce harm to civilians, including the use of precise munitions and aerial surveillance.

[00:05:55]Well, as the US continues its negotiations uh with Iran uh through mediators and also there in Qatar, of course, two parties with a particularly vested interest are looking on I have to say somewhat nervously and that of course is us here in Israel and the Iranian people and its supporters internationally. Well, joining us now to discuss more on that is reserves IDF Major Elliot Chof, a political and military analyst and also an Iranian activist joining us from the UK, Lily Moo. Elliot, I had want to start with you, President Prime Minister Netanyahu.

[00:06:30]You heard him saying he's asking the IDF to strike more, but at the same time, we know there's this ceasefire in place. We know there's this limitations uh being put on uh uh the IDF by the conditions of that ceasefire. Reportedly uh the chief of staff wants to move strikes against Beirut and he's being held back because of these Iran negotiations. Uh how limiting is that for the IDF and how much longer can that situation continue?

[00:07:03]>> It's extremely limiting. Uh with all due respect to uh Prime Minister Netanyahu's public statements, that's all it is is public statement. uh if he's talking about more of the same what we're what we're seeing and what we've been seeing since the so-called ceasefire what I call the we cease they fire arrangement uh is that we've been hitting tactical targets and and you can count them by the the dozens or even by the hundreds but not having a strategic impact onah so adding another number to that uh is not going to make any The only thing that will matter to is hitting them where where they really hurt and that is particularly in the dia in Beirut. There are other places as well. Uh at the moment, as of this moment, uh those are off the table because of American pressure. There's word the Americans are easing up on that. Uh the the great fear of course is that we'll enter into a situation of what what I've always referred to as the nursery school scenario. We nearly had one uh yesterday with a school uh bus stop being hit. Fortunately, there were no children there. Uh and then then the question is what do you do at that level of escalation? Uh do you tell the Americans thank you very much but no thank you, we can't do this anymore. uh or do you continue? As of now, we're maintaining essentially a status quo and giving free reign to do whatever they want.

[00:08:39]>> Right? And we'll come back specifically to the north, but all of this is of course a consequence of these uh US negotiations with Iran. I want to turn to Lily Moo now. Uh Lily, these are talks uh quite interesting. They're going on in Qatar. In the meantime, the US and Iranian forces are clashing in the Gulf. And as you just heard, the supreme leader or somebody using his telegram account is directly threatening US troops in the region even as these talks go on. So I want to get certainly your reaction to these negotiations, how you how you view them.

[00:09:16]>> Thank you. Thank you for having me, Khaled. And hello to you, Elliot, in north of Israel. I pray for all of your safety in the UK. Um we don't have a lot of um noise luckily but um the Islamic Republic is unfortunately a threat to all of us internationally at the moment whether it's being in London or inside of Israel um coming with their missiles towards Israel that is um now the negotiations as we see um when President Donald Trump is putting up something public we have to always remember that um his message and his stance regarding a nuclear nuclear weapons and the Islamic Republic has been constant and it has never changed. The the regime is not going to receive any sort of um access to any nuclear empowerment or any nuclear weapons. And for some reason, the Islamic Republic um as if it's falling on deaf ears, they're still putting this as one of their major um conditions as uh for negotiations. And considering Donald Trump has refused um such a condition previously, there's no reason to imagine um there would be another uh negotiation where he's going to turn around and change his mind. On top of that, um during the um Biden and Obama administration, President Donald Trump was um detesting the idea of having funds released to the Islamic Republic. Now, another condition in this negotiation has been put forward from the Islamic Republic's leaders or so-called um uh the cotton box leader Mustav um or as you mentioned his telegram account. Um uh they just another negotiation point uh put forward is the release of the blockaded Iranian money. Donald Trump has no desire to release any funds to a regime that is always funding proxies to carry out uh murder attacks against uh the president's administration or his team or his daughter recently. I mean uh this regime has been uh a a source and a force of terrorism, menace and murder within the Middle East and uh the international community in the international countries whether it was the um attacks during Hanukkah in Bondai Beach or in uh the most recent um attempts on uh the president's life again in the US. So this regime is um again also as you mentioned there is uh there is conflict and bombs and noise in the Persian Gulf. Why that is because this regime never follows through with what they uh say they're going to do nor do they um like you mentioned Elliot uh when you cease they fire they're they're never kept their word. So um attack um unfortunately attack against this regime is the only form of defense for the Americans or the international community. And as for the Iranians, Iranians came in their millions in in a space of 3 days, hundreds of thousands were shot, tens of thousands of those who were shot were murdered and killed.

[00:12:32]And those who survived are either in hiding or um many of those who survived the shots in the streets were shot at inside the hospitals. So there is a sea of blood between the Iranian people and the regime. this regime will have its downfall where there's going to be with the help and the rescue of the Americans like they promised us um with uh Donald Trump promising a rescue plan in January to the Iranian people and God bless the idea for actually carrying out so much of this rescue uh against the IRGC leaders against the military uh sites even though they have embedded themselves within the civilian areas of Iran. the civilian casualty in death has luckily been much less than the murders that have been carrying out at the hands of the Islamic Republic against the Iranian people.

[00:13:27]Yeah, I want to come >> I want to come back to you on that, but I want to go to Elliot on some of the points that also Lily is making the talking of perhaps if there is an agreement reached that'll free up some of those funds uh uh Iranian oil revenues. Of course, the fear is of course that will lead uh to uh some of those funds will end up of course uh funding Hezbollah. you know, is the the the stance taken in Israel by the security establishment uh and the government also is that there should be no linkage between the Iran negotiations and Israel's war against those conflicts could be should be separate.

[00:14:04]Unfortunately, they still are linked at the the present moment. I mean, do you do you feel Elliot the prime minister should be speaking up more forcefully on that or is he is it because of the geopolitical restraints basically that are forced on him now by having to cooperate with President Trump as he tries to carry out these negotiations.

[00:14:26]>> The prime minister is certainly hamstrung by by President Trump. uh Israel's dependency at the moment, political, geopolitical, strategic, military, uh is a consequence of of bad policies over over the decades that we're that are coming home to roost right now. Uh but on that level, the prime minister certainly is limited. I think we we should also keep in mind uh a few things. one public statements particularly by President Trump should be taken with a grain of salt uh particularly when when negotiations are going on everybody is trying to gain an additional angle we don't really know what's being said behind closed doors having said that there is an impression that is hard to shake and I don't want to state this as an absolute but it's an impression it's hard to shake that as has been the case in the past. America is going into these negotiations to end the conflict and the Iranian leadership is going into them to win the conflict.

[00:15:32]And the the gap between those means that America could end up making what it thinks is a good deal for its purposes, but ends up being counterproductive.

[00:15:45]especially uh as Lily mentioned before and I think we all know uh the Iranian leadership has absolutely no intention of keeping its word on anything. So any agreement that goes through will most likely to near 100% certainty mean that America will make concessions and follow through on making those concessions and then the Iranian leadership will back down in all sorts of ways above and below the table and and essentially win the negotiations if by no other way by cheating.

[00:16:16]>> Right. Uh well, Lily, I would like you to maybe you could pick up also on some of Ellie's comments, but uh you mentioned the crimes of the Iranian regime against its people. You know, it's so hard to get information out of Iran with the internet blackout, the communications blackout. We're still getting reports about executions, some of them sounding very horrific.

[00:16:35]What are you hearing or gathering from what's going on in in Iran at the moment for the people amid this uh this blackout?

[00:16:43]It's been almost 90 days of a blackout.

[00:16:46]We are experiencing a situation similar to North Korea. Uh as a diaspora in exile who is unable to reach home. Um finding out our family members are getting executed in public arenas or in hospital beds or in um quiet uh hidden prisons or even in safe houses as they have now. um after weeks after such atrocities and crimes have been uh taking place is an unbearable situation.

[00:17:14]But on top of that, our feelings aside, it is Iran that is held hostage. It is Iran that is in a blackout and it is Iran that is enduring the worst kind of atrocities under a blackout that is um fully heard. But u the silence from the international community and that desire and the demand to open open communication to the Iranian people when there was the slightest discomfort or uh disruption to communication coming out from Gaza um to the rest of the world.

[00:17:47]Uh Fotia after Fotia were uh trying to surround Israel. Yet here we have 90 days almost of an absolute blackout with atrocities shared by a very government who turned our cities into an open city morg during the January uh death toll is now um being kept completely completely abandoned by an international community that is um fully uh always um advocating for access for clar ity for truth and for uh news if I may. Everybody is a mobile journalist yet a single word is not coming out of Iran and not a single mobile journalist out of um out in the free world world is now curious as to why for 90 days 90 million Iranians are being held silent. It's it's atrocious.

[00:18:45]The the the atrocity of uh of blackouts on information aside, uh the fact that Iranians are getting executed and we're finding out about it so much later is atrocious. the fact that uh Iranian people have gone to the streets and they called out for exactly what they want and that story is being ignored and the narrative is being uh taken into geopolitics and oil prices is as if the blood of Iranian people that was spilled and is continuing to be spilled in those oil barrels is is is minute. So um for now as as an Iranian and as a a person who is in communication with a few people on the ground in Iran and as someone who is in communication with most of the diaspora. Our hope um is with our allies and I our hope is with our allies such as Israel and America.

[00:19:45]The only two countries that did come forward when the worst kind of atrocities took place against our people. It's um it is true. It is true that the Islamic Republic is posing a direct threat on Israel and it is an im imminent danger. However, the atrocities they committed against Iranians um will will be forever unmatched against anything else. And I really hope that's that kind of atrocity will never be repeated in in anywhere in in the world. But these mas have to be held accountable. No negotiation will turn the clock back. No negotiation would wash the blood off the hands of the Islamic Republic and their downfall is the only desire for the Iranian people.

[00:20:29]>> Right, Elio? We've been discussing with you and Lily these sort of broader strategic questions. I want to ask you a specific tactical question. When I read these accounts of these small cheap drones be kamicazi drones being used against Israeli soldiers. Unfortunately, I'm thinking of what's happening to Russian troops in in Ukraine there and reading about how the IDF is having to go and ask fishermen for nets in order to defend against them. I mean, how concerned is there something that has to be done tactically in Lebanon to to protect our troops more?

[00:21:04]>> Absolutely.

[00:21:05]>> There only there are only two ways of stopping these drones. one uh the less good way is to try to figure out some sort of kinetic way to defend against them. Uh the fisher fishing nets are a stop gap to try to keep them from landing inside or or on top of a tank uh or or vehicle with with an open turret uh turret hatch. Uh kinetic in the sense of figuring out some sort of way to fire against them. old-fashioned anti-aircraft fire from back in in the World War II period throwing a lot of munitions up in in the direction hoping to hit them. Uh but the real way to stop them is to go after the supply side of it. In other words, the launch the people launching them. Uh and and the IDF has started to do that. It's never going to be 100%. But go after the launchers, go after the the supply lines, the logistic lines. Uh has basically done something classic and they're not the first ones to do it against a super high techch adversary.

[00:22:12]That's Israel. You don't try to out hightech it. You low tech. You you get under its technical capabilities with equipment that can't be stopped by electronics because it's just too too low tech to do it that way. It's it's fiber optics. This is a a technology that dates back to to the 1960s, 1970s and a methodology that dates back to them. The the Saga anti-tank missiles that that the IDF faced in um in 1973 in the Yum Kipper war wasn't fiber optic, but they were wireg guided. There was no way to jam them.

[00:22:49]>> All right. Well, let's hope some kind of answer can be found. And let's hope uh as the US negotiates uh uh with the regime, it keeps in mind, of course, the interests and well-being of their their their allies and partners uh in here in Israel, there in Iran, and of course, from the Iranian community internationally. Uh Elliot Chor and Lily Moo, thank you for joining us on TV.

[00:23:14]>> Thank you. Thank you for having us.

[00:23:17]Let's take a brief word now uh from one of our partners.

[00:23:21]>> The state of Israel announces the year of otertove 0% income tax for new. You read that right. 0% income tax for new for those who make aliyah in 2026. And this is in addition to the existing benefits for new in employment and beyond. It's simply odor to 100% Zionism, 0% income tax. Now is the time to make aliyah. For more details, visit the Israeli website.

[00:23:57]Let's move on to some economic news. The Bank of Israel has announced a quarter point interest rate cut, which is lowering the benchmark rate from 4% to 3.75.

[00:24:08]This is the central bank moves to support the economy while warning that risks from the Iran war remain high.

[00:24:14]Now, the decision led by Bank of Israel Governor Amir Yon marks the second rate cut this year comes against the backdrop of a sharp strengthening of the shekele and continued uncertainty across the region. Now, the shekele is at its highest against the dollar in some 30 years with one dollar averaging uh this month about 2.9 shekels. Central banks said inflation remained stable at 1.9% which is well within the government's target range while the shekele has gained more than 8% against the dollar since the last rate decision. Uh economists say the stronger shekele has helped reduce import prices and ease inflationary pressures giving the central bank more room to lower borrowing costs. At the same time they warned that geopolitical uncertainty remains significant particularly during the US uh and Israeli conflict with Iran. The bank said the war has been had a direct impact on economic activity even though recent data shows some signs of recovery. Now while consumers may benefit from lower interest rates, many Israeli exporters say the rise of the shekele is hurting global competitiveness. And also those Israelis with savings or income in dollars, including businesses, are being badly hurt by the strong shekele. and local manufacturers accu accuse the central bank of acting too slowly saying governor has done too little too late to help businesses well joining us for more is professor vine and he knows quite a bit about these issues he's the uh head of the Aaron Institute for economic policy in Reich University and himself a former deputy governor of the bank of Israel uh professor thank you for joining us first of all I want to get you your your your just reaction to the rate cut and how do you feel about those who are claiming it's too little and to some degree, well, you can't help too late, but it's too little. Maybe they should have cut more than a quarter interest. Well, it's uh it's certainly cutting the rate uh should make the Israeli shekele a bit uh uh weaker because that will push investors to move their investments to the dollars. You know the main uh the structural issue in Israel is that Israel has a very uh large uh foreign exchange surplus unlike in the US which you have a a deficit here we have a surplus and the surplus is staying fairly high something between 4% of GDP and it's mainly due to the very strong performance of the ITC sector uh and uh including the defense expenditures the R&D centers and overall the high-tech sector has been still operating very well and it now more than 55% of total export and uh that has not been reduced as the profitability of the ITC sector is still very high even though the shekel is uh uh very strong so that's that's basically a structural problem in Israel and uh if uh if Israeli investor don't move their assets into foreign markets, uh, then we see the shekele get extremely strong.

[00:27:27]>> Let me ask let me ask you about that because it's definitely hurting some of us that have their savings and income in the in dollars. I can recall when you were the deputy governor uh understand with Stanley Fiser the bank and the sector was strong, you acted very aggressively uh in in in buying and boosting the foreign currency reserves.

[00:27:47]Is the bank doing enough being aggressive enough to to tackle this situation?

[00:27:53]>> Well, it's true. We were very active.

[00:27:56]That was at the beginning of the financial crisis and uh we were worried a lot on the export sector and eventually we uh intervened substantially in the market. We have to remember that when we start intervening the total stock of foreign exchange reserves were only 25 billion dollar. So there was also a need to uh to go and buy and to have a large reserves to the Israeli economy. Today uh the total reserves is 220 something billion shekels billion dollars and given the very large reserve then the need to to enlarge it by going into the market has been reduced dramatically and therefore you have seen in the last few years that the bank of Israel restrained from intervening by buying dollars in general.

[00:28:52]The other problem is to what extent this is a fundamental problem. I mean the the surplus is so high uh that uh in fact the getting the shekele stronger is consistent with the fundamentals and the bank of Israel we tried to has been trying to to intervene when uh the dollar value or the shekele value was not uh uh really fit what the fundamentals are. So therefore you see the bank of Israel is hesitant from really intervention and that's uh the main problem it may the main problem in reducing the interest rate even further is that u what we see in the inflation is that the local inflation meaning inflation that come from uh prices of services in Israel has been uh actually close to 3% 2.8 8. So almost the entire uh reason for the overall inflation of close to 2% is due to the very low uh price rise of uh imported goods and uh that's a that's a that's a real problem.

[00:30:05]Therefore the Bank of Israel is hesitant from pushing the interest rate extremely low. um and the only uh and and pushing this extremely low may uh be inconsistent with the inflation story within the country. So that's the reason I guess that the Bank of Israel is hesitant to go all the way down >> right now. We I only have about 30 seconds left. I just want to get how optimistic or are you or not about just the resilience of the Israeli economy uh given the the conflict with Iran? and the what kind of impact you see it having outside of maybe the tech sector which still just seems to be impervious to this. The key point is that the tax sector is doing very well. And what I'm expecting is that when we get out of the war, then Israeli consumers will take the opportunity of lower prices and start buying and that will increase imports and that could be another source of uh stabilizing the exchange rate toward back to the three uh shekel per dollar.

[00:31:09]>> All right. Well, let's hope that that war ends soon and that people feel they can go out and uh a little more secure to to spend a little extra a little extra of their income. Professors VXD, thank you for joining us on ILV.

[00:31:23]>> Thank you for having me.

[00:31:25]>> And that wraps up this broadcast. Thank you for joining us. You continue to watch us or go on to our app. There's a QR code on your screen. I'm KB Devid and thanks for watching.