July 23 (Bloomberg) -- Bloombergs Elliott Gotkine reports on U.S. Secretary of State John Kerrys visit to Israel as he attempts to broker a peace deal to end violence in the Gaza Strip. He speaks on Bloomberg Surveillance.[/caption]Israeldoesnt plan to stop its Gaza Strip offensive as long as the Palestinian territorys Hamas rulers continue to pose a threat, Justice MinisterTzipi Livnisaid, as U.S. Secretary of StateJohn Kerry flew to Israel in pursuit of an elusive truce deal.
There is no reason to stop here if Hamas continues to threaten, continues to fire, Livni, her countrys former chief negotiator with the Palestinians, told Israel Radio. She said Israel may be headed toward an ongoing offensive whose objective is not to contain the threat, but to disarm terror organizations, including Hamas. Defense Minister Moshe Yaalon told soldiers to prepare for a broader ground war.
The threat reverberated through Israels economy yesterday after a rocket fired from Gaza landed about a mile away from Israels international airport. The U.S.Federal Aviation Administrationbanned flights toTel Avivby American carriers for the first time since 1991 and the European Aviation Safety Agency recommended a suspension. The violence has barely affected Israeli markets.
As Livni spoke of the possibility of an expanding campaign, the United Nations High Commissioner forHuman Rightssaidwar crimesmay have been committed in the conflict. Navi Pillay focused mainly on Israels military conduct. Sixteen days of violence have claimed the lives of almost 700 people, including hundreds of Palestinian civilians. Millions of Israeli civilians have been menaced by rocket fire.
Photographer: Said Khatib/AFP via Getty ImagesPalestinian children inspect a destroyed mosque following an overnight Israeli military...Read More
Civilian Deaths
The mounting civilian casualties have driven international efforts to halt the third major round of violence between Israel and Gaza since 2009. Complicating things is the hostility between the new government ofEgypt, a traditional mediator of Gaza truce deals, and Hamas, an offshoot of Egypts outlawed Muslim Brotherhood movement.
The 30 members of Amin al-Dosouqis household fled their home in the Shujaiya neighborhood of Gaza City that has taken one of the worst beatings of the war.
I saw bodies of women and children thrown to the roadside, with no one able to take them to the hospital, the 65-year-old al-Dosoqui said.
We havent seen such a war before, he added. I was a young man in 1967 when Israel occupied Gaza and theWest Bank, the war in 1967 wasnt as violent, barbaric and ferocious as it is now. Even the wars in 2008 and 2012 werent as ferocious.
Ferocious Battles
Fighting was also fierce in southern Gaza, where 30 people were killed, said Ashraf al-Qedra, spokesman for the Gaza Health Ministry. Residents and security officials said tanks stationed in the area along Israels border bombarded houses. Ambulances were unable to collect casualties because the shelling was so intense, they said.
Photographer: Hassan Mohammed/Anadolu Agency via Getty ImagesU.S. Secretary of State John Kerry, second left, meets with Egyptian Foreign Minister...Read More
The Palestinian death toll has topped 665, with more than 4,300 wounded, the ministry said. Three civilians have been killed in Israel, including a Thai worker who died in an attack today. At least 29 soldiers have died in combat and one is missing.
Fighting first escalated July 8, when Israel intensified air strikes after weeks of rocket fire and aerial bombardments. Israel said it invaded Gaza last week to destroy a network of infiltration tunnels militants dug under the Gaza-Israel border. Today, Yaalon said the objectives would be widened.
We are preparing for the next stages of battle once the tunnels have been taken care of, he said in a visit with troops on the border. We must get ready for more serious steps inside Gaza, and the units who are on notice must prepare to enter.
Truce Call Spurned
Hamas spurned a truce proposal Egypt put forward last week after Israel accepted it, saying it didnt guarantee lifting the blockade on theGaza Strip. Israel and Egypt have tightly controlled Gazas borders since 2006, citing security concerns. The embargo has battered Gazas economy and confined the territorys 1.8 million people to a 140-square-mile (363-square-kilometer) patch of land.
Photographer: Jin Lee/Bloomberg Finance LP via BloombergMike Bloomberg, majority shareholder of Bloomberg LP and former New York mayor,...Read More
Kerry announced no breakthroughs after meeting yesterday with Egyptian officials in Cairo. Today, he took his truce mission to Israel and the West Bank, joining United Nations Secretary-General Ban Ki-moon inJerusalem. We made some steps forward but there is still work to be done, he said at a joint news conference with Ban.
Kerry is also meeting today with Palestinian PresidentMahmoud Abbasand Israeli Prime MinisterBenjamin Netanyahu.
Demilitarization
Tony Blinken, the U.S. deputy national security adviser, told NPR radio there has to be some way forward that does not involve Hamas raining down rockets on Israeli civilians. An end result needs to be some form of demilitarization, he added. He didnt say how Gaza might be disarmed.
Israeli markets have been largely unaffected by the violence. The shekel has appreciated 0.3 percent against the dollar since July 8 while the benchmark TA-25 index rose 1.2 percent in the period.
One of the 2,200 rockets the army says have fallen on Israel in the past two weeks fell about a mile (2 kilometers) from Ben-Gurion International Airport near Tel Aviv yesterday, prompting the suspension of dozens of international flights. Israel opened a small southern airport to international flights as an alternative today. There was no reason to stop the flights, Transportation Minister Israel Katz said in comments broadcast on Israel Radio.
Rockets Depleted
Mike Bloomberg, the former mayor ofNew Yorkand majority shareholder of Bloomberg LP, which ownsBloomberg News, arrived in Tel Aviv today after flying there on Israels El Al airline to demonstrate it is safe to fly to there.
Militants still have as many as 4,500 rockets in their arsenal, after they fired more than 2,000 and the Israeli army destroyed 3,500, army spokesman Lieutenant-Colonel Peter Lerner said today. Israel, the U.S. and the European Union list Hamas as a terrorist organization.
Pillays allegations of possible Israeli war crimes drew a furious reaction in Israel, with Foreign Ministry spokesman Yigal Palmor accusing her of making intolerably biased statements based on newspaper reports.
Her embarrassingly shallow and populist affirmations do a huge disservice to actual human rights, Palmor said in an e-mailed statement.
Israel says Hamas uses civilians, including children, as human shields by placing rocket launchers and weapons caches in or near homes, mosques, hospitals and schools.
While Pillay, in her testimony to the UN Human Rights Council in Geneva, criticized Gaza rocket fire for endangering the lives of Israeli civilians, most of her testimony dwelt on the Israeli militarys operations.
Insufficient Warnings?
Preliminary UN figures indicate about three-fourths of the Gazans killed were civilians, including about 150 children, she said, criticizing Israeli warnings to evacuate homes as insufficient. Citing accounts of deadly Israeli attacks on houses, a center for the disabled and a hospital, she said these are just a few examples where there seems to be a strong possibility that international humanitarian law has been violated, in a manner that could amount to war crimes.
After Israels last offensive, the UN conducted a war crimes investigation and accused Hamas and Israel of potential war crimes. The panels head,Richard Goldstone, later said new information on the events may have produced different conclusions.
By Bloomberg
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