11 April – Operation Grapes of Wrath: The Israeli government launches the Operation, consisting of massive attacks on Lebanon, in retaliation for prior terrorist attacks, and sparking off a violent series of retaliations.
18 June – Prime Minister Benjamin Netanyahu presents his cabinet for a Knesset "Vote of Confidence". The 27th Government is approved that day and the members were sworn in.
5 November – Israeli DruzeAzzam Azzam is arrested in Egypt on suspicion of spying for Israel. Later on, a military court in Cairo sentenced Azzam Azzam to 15 years imprisonment with hard labor.
30 December – Netanyahu proposed budget cuts, sparking protests from 250,000 workers, who went on strikes across Israel.
2 May – Emil Habibi (b. 1922), Israeli Arab author, Knesset member and public activist.
26 May – Haika Grossman (b. 1919), Polish-born Israeli politician and member of Knesset. Zionist leader in Europe, a partisan and a participant in the ghetto uprisings in Poland and Lithuania
^Morris, Nome; Silver, Eric (7 October 1996). "Israel Opens Disputed Tunnel". Maclean's Magazine. Archived from the original on 7 June 2011. Retrieved 29 July 2009.