Israel Business Leaders Urge Netanyahu to Keep Defense Chief Gallant 

 Israeli Defense Minister Yoav Gallant is received by US Secretary of Defense Lloyd Austin (not pictured) at the Pentagon in Washington, US, June 25, 2024. (Reuters)
Israeli Defense Minister Yoav Gallant is received by US Secretary of Defense Lloyd Austin (not pictured) at the Pentagon in Washington, US, June 25, 2024. (Reuters)
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Israel Business Leaders Urge Netanyahu to Keep Defense Chief Gallant 

 Israeli Defense Minister Yoav Gallant is received by US Secretary of Defense Lloyd Austin (not pictured) at the Pentagon in Washington, US, June 25, 2024. (Reuters)
Israeli Defense Minister Yoav Gallant is received by US Secretary of Defense Lloyd Austin (not pictured) at the Pentagon in Washington, US, June 25, 2024. (Reuters)

Israel's Business Forum on Tuesday urged Prime Minister Benjamin Netanyahu to not fire his defense minister, saying it would create more division and weaken the country after reports of an imminent political shake-up rattled the country.

Israel's leading television channels and news websites have reported that Netanyahu, under pressure from far-right coalition partners, was contemplating firing Defense Minister Yoav Gallant and replacing him with a former ally turned rival, Gideon Saar, who is currently a member of the opposition.

The forum, which consists of 200 heads of Israel's largest companies that employ many private sector workers, said Netanyahu should stop "messing around with petty politics" during a war.

"Immediately stop the process of replacing (Gallant)," the forum said in a statement. "The firing of the minister weakens Israel in the eyes of her enemies, and will further deepen the division in the people of Israel."

Such a move would be a shock to the political and security landscape, especially as the war with Hamas in Gaza rages on and with the looming threat of all-out war between Israel and Iran-backed Hezbollah in Lebanon.

Netanyahu denied that he was in negotiations with Saar, though he did not refer to his plans for Gallant. Saar denied that he was negotiating with some members of the coalition.

"The prime minister knows better than anyone that all the economic indicators also prove that Israel is deteriorating into an economic abyss and sinking into a deep recession," the forum said. "The last thing Israel needs at this time is the firing of a defense minister - which will continue to shock the country."

On Monday, official data showed the economy grew an annualized 0.7% in the second quarter, revised down from a prior estimate of 1.2%. On a per capita basis, the economy contracted 0.9% in the quarter.

In March 2023, Netanyahu fired Gallant after he broke ranks with the government and urged a halt to a highly contested plan to overhaul the judicial system. That triggered mass protests and Netanyahu backtracked.



Trump Says He Might Demand Panama Hand over Canal

This handout picture released by the Panama Canal Authority on August 30, 2024, shows the container ship MSC Marie, of 366 meters long and 51 meters wide, transiting the Panama Canal in Panama. (Handout / Panama Canal Authority / AFP)
This handout picture released by the Panama Canal Authority on August 30, 2024, shows the container ship MSC Marie, of 366 meters long and 51 meters wide, transiting the Panama Canal in Panama. (Handout / Panama Canal Authority / AFP)
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Trump Says He Might Demand Panama Hand over Canal

This handout picture released by the Panama Canal Authority on August 30, 2024, shows the container ship MSC Marie, of 366 meters long and 51 meters wide, transiting the Panama Canal in Panama. (Handout / Panama Canal Authority / AFP)
This handout picture released by the Panama Canal Authority on August 30, 2024, shows the container ship MSC Marie, of 366 meters long and 51 meters wide, transiting the Panama Canal in Panama. (Handout / Panama Canal Authority / AFP)

President-elect Donald Trump on Saturday accused Panama of charging excessive rates for use of the Panama Canal and said that if Panama did not manage the canal in an acceptable fashion, he would demand the US ally hand it over.

In an evening post on Truth Social, Trump also warned he would not let the canal fall into the "wrong hands," and he seemed to warn of potential Chinese influence on the passage, writing the canal should not be managed by China.

The post was an exceedingly rare example of a US leader saying he could push a sovereign country to hand over territory. It also underlines an expected shift in US diplomacy under Trump, who has not historically shied away from threatening allies and using bellicose rhetoric when dealing with counterparts.

The United States largely built the canal and administrated territory surrounding the passage for decades. But the US government fully handed control of the canal to Panama in 1999 after a period of joint administration.

"The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US," Trump wrote in his Truth Social post.

"It was not given for the benefit of others, but merely as a token of cooperation with us and Panama. If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question."

The Panamanian embassy in Washington did not immediately respond to a request for comment.