Most Israeli bakeries stopped making bread following the populist government’s refusal to allow 12% price hike in response to 30% increase in world market’s flour prices.

Following the degradation of Israeli political establishment, crime syndicates also went low. Israeli police busted two criminal syndicates for over-reporting the number of recycled bottles.

IDF conducts threatening exercises on the Golan Heights. Syrian media claims Israel prepares for an attack. Suspicious of each other, both sides escalate military preparedness and consider preemption.
A successful war with Syria is Olmert’s only chance of winning the elections. Olmert similarly launched the Second Lebanon War to distract Israeli public from the political mismanagement.
The US accuses Syria of aiding Iraqi querrillas, and would love Israel to attack Syria.

Families of the kidnapped IDF’s soldiers travel the EU imploring various government officials to help bring their children back. The IDF historically brought its soldiers back by capturing Arab enemies for prisoners’ exchange.

Dughmush clan which held Johnston claims Hamas promised to legitimize their “Army of Islam” in return for Johnston’s release. Hamas refrained from attacking the clan which numbers more active militants than Hamas.

Unhappy with Olmert’s cabinet reshuffle, the Labor Party will oppose Olmert government’s cuts in subsidies to Israeli Arabs.

Greece’s Foreign Ministry clashed with ousted patriarch of Greek Orthodox Church in Jerusalem Ireneus I. Jordan ousted Ireneus for his land sale to Jewish companies. Jordan, at peace with Israel, bans sale of land to Jews whom its law euphemistically describes as “non-Arabs.”
Israel’s Supreme Court will decide whether Ireneus was fired legally, and can reinstate him. This is the first time when Jews decide the fate of a Christian patriarch.

11 killed, 109 interrogated in Gaza, no arrests in Nablus. Fatah guerrillas engaged the IDF in firefight in Nablus. Elsewhere in the West Bank, the IDF helped Fatah by arresting 13 Hamas and PIJ members.
IDF desecrated 3 mosques in Al-Khalil searching for Arab terrorists.

Explosives were prepared in Sinai for smuggling into Gaza.