Israel's economy minister said on Wednesday it seeks a peaceful Gaza but has not decided whether to help fund its reconstruction and would not allow the rebuilding of Hamas rule that he said could lead to another cross-border militant attack.

The Bank of Israel could reduce short-term interest rates one or two times in the second half of 2025 as long as inflation moves back below 3%, Governor Amir Yaron said on Wednesday.

The United Nations secretary-general has warned that Israel might seize the opportunity to annex the occupied West Bank.

The Israel-Hamas war has put back development in Gaza by 60 years and mobilising the tens of billions of dollars needed for reconstruction will be an uphill task, the United Nations said.

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Saudi Arabia's foreign minister said on Tuesday he did not see Donald Trump's new administration increasing the risk of an Israel-Iran conflict, addressing an issue the region has feared since the start of Israel's war in Gaza.

Iran's Vice President Zarif said its allies in the region, including Hamas, have “always worked for their own cause, even at our expense”.

At World Economic Forum, Prince Faisal urges to avoid such a conflict; Herzog tells summit that nuclear bomb-seeking Iran will be 'main issue' on US president's agenda

Israel's economy and industry minister Nir Barkat has sought Hamas to be replaced with people who recognise the state of Israel and who are "peace-seeking". In an interview to NDTV at Davos, Mr Barkat also spoke on a range of matters.

A durable ceasefire should pave the way for economic growth in Israel and the region, the central bank governor told CNBC.

The Israeli military says its soldiers killed an alleged militant in Gaza whom it said posed a threat to its forces