Israeli Prime Minister Benjamin Netanyahu has told Sky News he will do “whatever we need to do to defend ourselves” against Iran – and diplomacy has failed to stop Tehran from developing its nuclear capabilities.
Speaking exclusively at the prime minister’s offices in Jerusalem, Mr Netanyahu rejected US attempts to resolve the growing crisis only through dialogue.
“I don’t think that diplomacy by itself will work. I think diplomacy can only work if it’s coupled with a credible military threat or the willingness to apply the military option if deterrence fails,” he said.
“Iran is openly committed to destroying, repeating the Holocaust and destroying the six or seven million Jews of Israel and we’re not going to sit by, idly by and let them do it.
“(If) these Ayatollahs think that they could threaten us with a nuclear holocaust they’re wrong. We will do whatever we need to do to defend ourselves.”
During the interview, Mr Netanyahu sent a message to Saudi Arabia and Crown Prince Mohammed bin Salman as rumours of a peace deal between the countries continue to circulate.
“Our hand is extended to all Arab States and certainly to Saudi Arabia which is vitally important,” he said.
“We have great opportunities to advance the peace in our region, peace between our two countries, the wellbeing of our peoples. I think it would change history.
“I mean we have already made one historic turning point with the four peace treaties of The Abraham accords which Israel made under my leadership with UAE (United Arab Emirates), with Bahrain, with Morocco, with Sudan.
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“Obviously Saudi Arabia would be a quantum leap forward because it’s the most influential Arab country not only in the Arab world I think also in the Muslim world, so it would fashion I think the possibility of ending the Arab-Israeli conflict, and I think that it would also help us solve the Palestinian-Israeli conflict.”
Image: Protests in Tel Aviv
Mr Netanyahu was also challenged on domestic issues – including the controversial judicial reforms that have divided Israel and seen 22 continuous weeks of mass protests.
He was forced to halt the process after the country came to a standstill following his sacking of the defence minister, who was later quietly reinstalled. Compromise negotiations are now taking place to find an agreement.
“It seems to me we have a situation where there is now a fairly broad majority that says we have to reform our judicial system, but the question is how much and how fast? And that is something that I decided in the wake of ensuing months to try and get a consensus,” he said.
“I’m not sure we will get one. We have to bring it into a happy middle, it’s going to be very hard because it’s extremely politicised and often misrepresented.”
The proposed reforms have attracted public criticism from international allies, including the US. President Joe Biden openly chided the Israeli leader, saying to the American media in March “they cannot continue down this road”.
There has been a significant impact on Israel’s economy, with investors spooked by the proposed reforms – the shekel has fallen by about 5.5% against the dollar, investment in the prided tech industry is down 70% in the first quarter of 2023 compared with 12 months ago, and the credit ratings agency Fitch recently warning Israel that its A+ rating was at risk.
Mr Netanyahu dismissed the concerns: “I don’t think the economy is the problem, I think political consensus is the problem.
“There’s a vast misrepresentation about what we’re doing, everybody’s adding to it, saying we’re going to take away the independence of the court – no we’re not. I’m not going to let that happen.
“It’s important to understand Israel’s economy is very powerful and it’s going to remain powerful because it’s a high tech economy in a high tech world.”
Image: Benjamin Netanyahu and Joe Biden. File pic: AP
Additionally, the Netanyahu government has approved the building of about 7,000 new settlement homes in the occupied West Bank since the start of the year, a practice considered illegal under international law and by most governments.
The prime minister described as “completely false” a recent statement by the US State Department condemning the building of a Jewish religious school on West Bank land as “violating Israel’s commitment to the Biden administration”.
“For God sake, this is the land of Israel, it’s our country, so I completely disagree with that, but I think one thing is true – the Palestinians are here and we’re not going to push them out, we’re here and they’re not going to push us out.”
Mr Netanyahu did however commit to preserving the fragile ‘status quo’ at the holy Muslim site in Jerusalem, al Aqsa Compound, known to Jews as The Temple Mount, despite a recent visit by his far-right nationalist interior minister, Itamar Ben Gvir.
“The Temple Mount the status quo sacrosanct, we’re not changing it. I don’t care what anybody says, we’re keeping the status quo and ultimately overtime people will judge it and they will see it hasn’t changed, and won’t change,” he said.
Donald Trump has announced a 10% trade tariff on all imports from the UK – as he unleashed sweeping tariffs across the globe.
Speaking at a White House event entitled “Make America Wealthy Again”, the president held up a chart detailing the worst offenders – which also showed the new tariffs the US would be imposing.
“This is Liberation Day,” he told a cheering audience of supporters, while hitting out at foreign “cheaters”.
He claimed “trillions” of dollars from the “reciprocal” levies he was imposing on others’ trade barriers would provide relief for the US taxpayer and restore US jobs and factories.
Mr Trump said the US has been “looted, pillaged, raped, plundered” by other nations.
Image: Pic: AP
His first tariff announcement was a 25% duty on all car imports from midnight – 5am on Thursday, UK time.
Mr Trump confirmed the European Union would face a 20% reciprocal tariff on all other imports. China’s rate was set at 34%.
The UK’s rate of 10% was perhaps a shot across the bows over the country’s 20% VAT rate, though the president’s board suggested a 10% tariff imbalance between the two nations.
It was also confirmed that further US tariffs were planned on some individual sectors including semiconductors, pharmaceuticals and critical mineral imports.
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6:39
Trump’s tariffs explained
The ramping up of duties promises to be painful for the global economy. Tariffs on steel and aluminium are already in effect.
The UK government signalled there would be no immediate retaliation.
Business and Trade Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.
“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.
“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.
“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”
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0:43
Who showed up for Trump’s tariff address?
The EU has pledged to retaliate, which is a problem for Northern Ireland.
Should that scenario play out, the region faces the prospect of rising prices because all its imports are tied to EU rules under post-Brexit trading arrangements.
It means US goods shipped to Northern Ireland would be subject to the EU’s reprisals.
The impact of a trade war would be expected to be widely negative, with tit-for-tat tariffs risking job losses, a ramping up of prices and cooling of global trade.
Research for the Institute for Public Policy Research has suggested more than 25,000 direct jobs in the UK car manufacturing industry alone could be at risk from the tariffs on car exports to the US.
The Society of Motor Manufacturers and Traders (SMMT) had said the tariff costs could not be absorbed by manufacturers and may lead to a review of output.
The tariffs now on UK exports pose a big risk to growth and the so-called headroom Chancellor Rachel Reeves was forced to restore to the public finances at the spring statement, risking further spending cuts or tax rises ahead to meet her fiscal rules.
A member of the Office for Budget Responsibility (OBR), David Miles, told MPs on Tuesday that US tariffs at 20% or 25% maintained on the UK for five years would “knock out all the headroom the government currently has”.
But he added that a “very limited tariff war” that the UK stays out of could be “mildly positive”.
He said: “There’s a bit of trade that will get diverted to the UK, and some of the exports from China, for example, that would have gone to the US, they’ll be looking for a home for them in the rest of the world.
“And stuff would be available in the UK a bit cheaper than otherwise would have been. So there is one, not central scenario at all, which is very, very mildly potentially positive to the UK. All the other ones which involve the UK facing tariffs are negative, and they’re negative to very different extents.”
Israel is beginning a major expansion of its military operation in Gaza and will seize large areas of the territory, the country’s defence minister said.
Israel Katz said in a statement that there would be a large scale evacuation of the Palestinian population from fighting areas.
In a post on X, he wrote: “I call on the residents of Gaza to act now to remove Hamas and return all the hostages. This is the only way to end the war.”
He said the offensive was “expanding to crush and clean the area of terrorists and terrorist infrastructure and capture large areas that will be added to the security zones of the State of Israel”.
The expansion of Israel’s military operation in Gaza deepens its renewed offensive.
The deal had seen the release of dozens of hostages and hundreds of Palestinian prisoners, but collapsed before it could move to phase two, which would have involved the release of all hostages and the withdrawal of Israeli forces from Gaza.
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1:08
26 March: Anti-Hamas chants heard at protest in Gaza
The Israel Defense Forces (IDF) had already issued evacuation warnings to Gazans living around the southern city of Rafah and towards the city of Khan Yunis, telling them to move to the al Mawasi area on the shore, which was previously designated a humanitarian zone.
Israeli forces have already set up a significant buffer zone within Gaza, having expanded an area around the edge of the territory that had existed before the war, as well as a large security area in the so-called Netzarim corridor through the middle of Gaza.
This latest conflict began when Hamas launched an attack on Israel on 7 October 2023, killing around 1,200 people and taking around 250 hostages.
The ensuing Israeli offensive has killed more than 50,000 Palestinians, according to Gaza’s Hamas-run health ministry.
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1:22
Bodies of aid workers found in Gaza
Aid group Doctors Without Borders warned on Wednesday that Israel’s month-long siege of Gaza means some critical medications are now short in supply and are running out, leaving Palestinians at risk of losing vital healthcare.
“The Israeli authorities’ have condemned the people of Gaza to unbearable suffering with their deadly siege,” said Myriam Laaroussi, the group’s emergency coordinator in Gaza.
“This deliberate infliction of harm on people is like a slow death; it must end immediately.”
“Liberation day” was due to be on 1 April. But Donald Trump decided to shift it by a day because he didn’t want anyone to think it was an April fool.
It is no joke for him and it is no joke for governments globally as they brace for his tariff announcements.
It is stunning how little we know about the plans to be announced in the Rose Garden of the White House later today.
It was telling that we didn’t see the President at all on Tuesday. He and all his advisers were huddled in the West Wing, away from the cameras, finalising the tariff plans.
Treasury Secretary Scott Bessent is the so-called ‘measured voice’. A former hedge fund manager, he has argued for targeted not blanket tariffs.
Peter Navarro is Trump’s senior counsellor for trade and manufacturing. A long-time aide and confidante of the president, he is a true loyalist and a firm believer in the merits of tariffs.
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His economic views are well beyond mainstream economic thought – precisely why he appeals to Trump.
The third key character is Howard Lutnick, the commerce secretary and the biggest proponent of the full-throttle liberation day tariff juggernaut.
The businessman, philanthropist, Trump fundraiser and billionaire (net worth ranging between $1bn and $2bn) has been among the closest to Trump over the past 73 days of this presidency – frequently in and out of the West Wing.
If anything goes wrong, observers here in Washington suspect Trump will make Lutnick the fall guy.
And what if it does all go wrong? What if Trump is actually the April fool?
“It’s going to work…” his press secretary said when asked if it could all be a disaster, driving up the cost of living for Americans and creating global economic chaos.
“The president has a brilliant team who have been studying these issues for decades and we are focussed on restoring the global age of America…” Karoline Leavitt said.
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2:52
‘Days of US being ripped off are over’
Dancing to the president’s tune
My sense is that we should see “liberation day” not as the moment it’s all over in terms of negotiations for countries globally as they try to carve out deals with the White House. Rather it should be seen as the start.
Trump, as always, wants to be seen as the one calling the shots, taking control, seizing the limelight. He wants the world to dance to his tune. Today is his moment.
But beyond today, alongside the inevitable tit-for-tat retaliation, expect to see efforts by nations to seek carve-outs and to throw bones to Trump; to identify areas where trade policies can be tweaked to placate the president.
Even small offerings which change little in a material sense could give Trump the chance to spin and present himself as the winning deal maker he craves to be.
One significant challenge for foreign governments and their diplomats in Washington has been engaging the president himself with proposals he might like.
Negotiations take place with a White House team who are themselves unsure where the president will ultimately land. It’s resulted in unsatisfactory speculative negotiations.
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6:03
Treasury minister: ‘We’ll do everything to secure a deal’
Too much faith placed in the ‘special relationship’?
The UK believes it’s in a better position than most other countries globally. It sits outside the EU giving it autonomy in its trade policy, its deficit with the US is small, and Trump loves Britain.
It’s true too that the UK government has managed to accelerate trade conversations with the White House on a tariff-free trade partnership. Trump’s threats have forced conversations that would normally sit in the long grass for months.
Yet, for now, the conversations have yielded nothing firm. That’s a worry for sure. Did Keir Starmer have too much faith in the ‘special relationship’?
Downing Street will have identified areas where they can tweak trade policy to placate Trump. Cars maybe? Currently US cars into the UK carry a 10% tariff. Digital services perhaps?
US food? Unlikely – there are non-tariff barriers on US food because the consensus seems to be that chlorinated chicken and the like isn’t something UK consumers want.
Easier access to UK financial services maybe? More visas for Americans?
For now though, everyone is waiting to see what Trump does before they either retaliate or relent and lower their own market barriers.