January 17 – Lieutenant-General Dan Halutz, the Chief of Staff of the Israeli Army, resigns while inquiries into the performance of the Israel Defense Forces in the action against Hezbollah continue.[1]
January 24 – President Katsav holds a press conference broadcast live on Israeli news broadcasts in which he accuses journalists of persecuting him and judging him before all the evidence has been presented and before actually being convicted. In addition, he also accuses the police, who he claims did everything to prove that he is guilty.
June 13 – In the 2007 Presidential Election, the Knesset elects Shimon Peres as the ninth president of the State of Israel, by a second-round vote of 86 for and 23 against, following the withdrawal in his favour of the other two candidates. In the first round, Peres had failed to obtain an absolute majority in the 120-member Knesset receiving 58 votes, against 38 for Reuven Rivlin and 21 for Colette Avital. (Peres does not assume office until July 15.)
June 28 – President Katsav's lawyers reach a controversial plea bargain with Israel’s attorney general, Menachem Mazuz. According to the deal, Katsav would plead guilty to several counts of sexual harassment and indecent acts and receive a suspended jail sentence, and pay compensation to two of his victims. The more serious rape charges brought by the initial employee, A., have been dropped, as well as Katsav's original charges of her blackmailing him.
June 7–15 – Battle of Gaza: Hamas takes control of the entire Gaza Strip after numerous gun battles, and establishes a separate government while Fatah remains in control of the West Bank. This in practice divides the area administered by the Palestinian Authority into two. Chairman Mahmoud Abbas and the more moderate Fatah party advocate a Palestinian Arab state alongside Israel, while Prime Minister Ismail Haniyeh and the Islamist Hamas party reject Israel's right to exist.
November 27 – The Annapolis Conference is held in Annapolis, the capital of the US state of Maryland. The conference marks the first time a two-state solution is articulated as the mutually agreed-upon outline for addressing the Israeli–Palestinian conflict. The conference ends with the issuing of a joint statement from all parties.
Notable Palestinian militant operations against Israeli targets
May 2 – Hamas and Islamic Jihad launch at least 18 rockets into Israel, damaging a road, hitting a car in a commercial center of Sderot, killing an Israeli woman and lightly wounding 2 others.
May 21 – A man is killed in Sderot after a rocket landed near the car in which he was sitting.
September 10 – Two Qassam rockets are fired from Beit Hanun at the Zikim Army Base in Israel located near the Gaza Border. One of them lands safely in the Negev, but the other lands near unfortified barracks (Zikim military base) at the base where Israeli recruits were sleeping. This resulted in at least 66 wounded, with at least 10 moderately to seriously. 69 soldiers were wounded by the rocket, 60+ of them had only light-to moderate shrapnel wounds, but four of them were injured seriously. One of the four had to have his leg amputated, and another was in a critical condition. Both Islamic Jihad and PRC claimed responsibility.[15][16]
Notable Israeli military operations against Palestinian militancy targets
This section needs expansion. You can help by adding to it. (October 2010)
April 7 – Israeli helicopters fire at least two missiles into the northern Gaza Strip. The missile killed a Palestinian militant "while mounting an operation near the border" in a statement released by Islamic Jihad.[17]
May 17 – Gaza–Israel conflict: An Israeli aircraft bombs a building of the Hamas-run Executive Force in Gaza, killing at least one person and injuring about 45 others.[18]
May 20 – Gaza–Israel conflict: An IAF plane fires a missile at house of Hamas lawmaker Khalil al-Haya, killing eight people (6 of whom were civilians) and wounding many others; Al-Haya was not at his house at the time of the strike.[19]