Israel threatens to annex land in Gaza unless hostages freed

Alisa Odenheimer, Bloomberg News on Mar 21, 2025

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Israel will permanently annex land in Gaza if Hamas continues to refuse to free hostages, its defense minister said.

Israel Katz’s comments on Friday came days after renewed Israeli airstrikes on Gaza — as well as the country moving more troops into the Palestinian territory. Those signaled the breakdown of a ceasefire that had been in place since mid-January.

Also on Friday, Israel’s high court temporarily suspended the Cabinet’s decision a day earlier to oust Ronen Bar, the head of the Shin Bet intelligence agency. Prime Minister Benjamin Netanyahu’s plan to fire Bar sparked protests, with thousands of Israelis taking to the streets claiming the government is trying to weaken checks and balances on its actions.

The government may challenge the court ruling.

Large protests are planned for Saturday evening and Sunday in Tel Aviv.

Israeli financial assets have come under pressure in the past month as the truce became more fragile, and amid rising tension between Netanyahu’s government and key institutions. The shekel has lost around 3.6% against the dollar, one of the worst performances globally.

Katz, the defense minister, said he instructed the Israeli military to seize territory in Gaza and order civilians to move out of certain areas if the hostages aren’t freed. He didn’t give a deadline.

“The more Hamas continues its refusal to release the hostages, the more territory it will lose to Israel,” Katz said.

Hamas, designated a terrorist organization by the U.S. and many other countries, still holds 59 hostages, of who Israel believe fewer than 25 are alive. Talks between the warring sides — mediated by Qatar, Egypt and the U.S. — have broken down in recent weeks.

Israel insists that Hamas must disarm and step down from power in Gaza. The group’s shown no willingness to lay down its arms.

A poll published by Maariv, an Israeli newspaper, suggested 38% of respondents favored annexing land in the Gaza Strip if the captives are not released.

Hamas invaded southern Israel on Oct. 7, 2023, killing about 1,200 people and taking more than 250 hostage. Israel’s subsequent offensive has killed more than 48,000 people, according to the Hamas-run health ministry in Gaza.

Katz also pledged to intensify strikes on Hamas from the air, sea and land and to expand the ground operation until Hamas is defeated.

Many Palestinians hope to eventually form an independent state comprising Gaza, which has about 2 million people, and the larger territory of the West Bank. Israel’s government is against Palestinian statehood and exercises widespread military and security control over both territories.