Israel's currency fell alongside its bonds and stock market on Tuesday as a wave of deadly airstrikes by its military in Gaza threatened the complete collapse of an already fragile two-month ceasefire with Hamas.

After Hamas’ Oct. 7 attacks, Israelis mobilized almost without reservation for war, and sacrifice. But the overnight airstrikes that killed hundreds in Gaza finds many Israelis exhausted by a long war and suspicious of their leaders’ motivations.

For Palestinians, the renewed strikes brought a sudden return to the carnage and terror of the 15-month-long war.

Israel Katz said he had instructed the military to seize parts of the strip if Hamas didn’t release all the hostages.