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...Though Israel's much vaunted intelligence apparatus has been monitoring Hizballah for more than two decades, there are still dangerous gaps in its knowledge of the group's military capabilities. Hassan Nasrallah's organization has proven much harder to penetrate than Palestinian militant groups, though Israeli intelligence has, says a senior official, intercepted communications in which Hizballah is trying to use money or ideology to spur Palestinian militants to carry out attacks in Israel. But given the gaps in Israel's intelligence, there was plenty of reason for concern when, after the attack at sea, Nasrallah promised more "surprises...

Author: /time Magazine | Title: Behind Hizballah's War Machine | 7/20/2006 | See Source »

...raids struck targets on the edges of the city around the Palestinian refugee camps of Bourj Shemali and Al-Bass. But one missile plowed into a 12-story apartment block housing the offices of the Lebanese civil defense, killing 20 people. Monday night, the city reverberated to the boom of air strikes every few minutes while Israeli helicopter gunships clattered off the coast and reconnaissance drones whined overhead...

Author: /time Magazine | Title: On Scene: Cut Off and Under Siege in South Lebanon | 7/18/2006 | See Source »

...Partner Telecommunications Co. Ltd., in Tel Aviv, considered to be the biggest investment, valued at $150 million, ever made in the Jewish state by an investor from an Arab country. Sawiris expected the rebukes he received from some fellow Arabs for doing business with Israelis even as the Israeli-Palestinian conflict still rages. But he insists that such deals will benefit the region by forming business bridges. "This is a very big step," says Sawiris, sipping an espresso in his 26th-floor office overlooking downtown Cairo, the Nile River and the Giza pyramids. "I am betting that peace will prevail...

Author: /time Magazine | Title: Beyond the Bazaar | 7/17/2006 | See Source »

...Early on, in fact, Peretz confirmed some of his critics' fears. He sparred with his boss and Israeli Defense Forces (IDF) generals when he pushed to reopen a long-closed commercial crossing point into Gaza and advocated talks with Palestinian President Mahmoud Abbas. Before the present crisis began, he and Olmert were heavily criticized for failing to stem rocket fire from Gaza into Israeli towns - including the hometown where Peretz returned every night to sleep. When he slept, that is. Aides said then, and military officials say now, that Peretz sleeps little, putting in extra hours to micromanage military affairs...

Author: /time Magazine | Title: The Former Dove Who's Directing Israel's War | 7/17/2006 | See Source »

...parties are not to be engaged. The thinking is that isolation, ostracism and, if need be, sanctions are more likely to get troublesome actors to change their ways. And so the list of diplomatic outcasts only grows. Today the U.S. does not talk to Iran, Syria, Hamas, the elected Palestinian government or Hizballah. And as the violence in the region clearly shows, that has hardly been cause for moderation. President Bush once famously observed that the U.S. had sanctioned itself out of all leverage on Iran. In truth, it has worked itself out of much influence on the region...

Author: /time Magazine | Title: Time to Start Talking | 7/16/2006 | See Source »

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