Israeli defense officials at odds with Netanyahu over Hamas, Hezbollah cease-fire conditions

TEL AVIV -- Officials in Israel's defense establishment are now strenuously contradicting Israeli Prime Minister Benjamin Netanyahu's insistence that Israel maintain control of the narrow strip of land along the Gaza-Egypt border known as the Philadelphi Corridor, and warning that Netanyahu's reluctance to sign a cease-fire deal with Hamas is pushing Israel into a potentially disastrous war with Hezbollah in Lebanon, according to Israeli military and senior defense officials who spoke with ABC News.

A war with Hezbollah in Lebanon "is easy to start, but very hard to end," one such official said, on condition of anonymity. "We are losing the war, we are losing deterrence, we are losing the hostages."

ABC News, along with other journalists and accompanied by Israeli Defense Forces (IDF) personnel, was given access to the Philadelphi Corridor Friday – a narrow strip of territory roughly a half-mile wide that runs along the entirety of the southern Gaza border with Egypt. What were once blocks of apartments there are now piles of rubble amid a wasteland of dunes. Military officials told ABC News their work in the corridor was mostly done.

IDF and other Israeli military officials, including Defense Minister Yoav Gallant, have called a cease-fire and hostage release deal with Hamas the key to reaching a solution to Israel's current regional strife. Israel and Hezbollah, which has been launching frequent rocket attacks against northern Israel from Lebanon, have each agreed to the broad parameters of a deal to decrease hostilities, but Hezbollah has said its participation is contingent on Israel reaching a cease-fire deal with Hamas in Gaza – which Hamas says must include all Israeli forces leaving Gaza.

However, many Israeli officials, including several who spoke with ABC News in recent days, believe that Netanyahu is purposely trying to torpedo negotiations to free the remaining Israeli hostages held by Hamas by insisting that the Philadelphi Corridor remain under Israel's control, though they did not speak to possible reasons for Netanyahu's insistence.

"If Philadelphi was so important, why did we wait eight months [into the war] to take it?" one senior Israeli official told ABC News.

Those officials now say that Israel is "stuck" in Gaza, able to kill Hamas militants and yet unable to advance one of the Israel-Hamas war's primary aims, which Israeli Defense Minister Gallant recently told a small group of reporters was the "moral and ethical commitment" to bring Israel's remaining hostages home. One official said that given the current circumstances, the best Israel can hope for is the repatriation of perhaps 20-30 hostages out of the 100 or so believed to remain in Gaza.

U.S. Envoy Amos Hochstein has been shuttling between Beirut and Jerusalem attempting to broker a cease-fire deal with Hezbollah that would see the latter retreat about 10 kilometers north of their current position in Lebanon, replaced by Lebanese Army forces and personnel from the United Nations Interim Force in Lebanon (UNIFIL), in exchange for small Israeli concessions along the Israeli-Lebanese border. This is the same deal Israeli officials have said has been on the table since January.

Adding urgency to the current situation are general concerns about whether Israel possesses sufficient munitions and missile and rocket/missile interceptors to defend itself in any confrontation with Hezbollah. One senior Israeli official told ABC News that Israel's hawks, clamoring for war with Hezbollah, are unaware of how difficult it is for Israel to procure Joint Direct Attack Munitions (JDAM) kits, necessary to convert so-called "dumb" bombs into precision guided weapons that use GPS coordinates to strike a target.

Israeli officials are also concerned that Hezbollah's estimated arsenal of over 100,000 rockets and missiles could cause widespread damage across Israel. Those officials also warn of the potential for destruction on the Lebanese side. For example, during the 2006 Hezbollah-Israel war, Israel's air force crippled Lebanon's electrical grid and flattened large swaths of south Beirut.

Israel is also contending with how to respond to a recent attacks from Iranian-backed Houthi rebels, after Israel says it intercepted and destroyed a Houthi surface-to-surface missile fired at Israel on Sunday.

The Houthi movement claimed responsibility for the missile attack, claiming in a statement that it was aimed at an "important military target" in the Tel Aviv region. The Houthis claimed the missile flew some 1,267 miles in less than 12 minutes and that Israeli anti-missile defenses "failed to intercept" the weapon. The IDF initially confirmed to ABC News that its defenses failed to intercept the missile but changed its conclusions upon further investigation.

The Israeli officials who spoke with ABC News said that Israel is vowing retaliation, and is investigating how the Houthis managed to twice penetrate Israel's air defenses in two months.

"The Houthis are here to stay," said one official, adding that the assessment is that they will likely keep attacking, regardless of a Hamas ceasefire.