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Israel as the most economically evolved country in the Middle East would hardly welcome a wide-spread conflict. It would to horrid things to their otherwise bustling financial affairs (the stock market wouldn't recover for years, at least). Plus Israelis are pretty much used to a western life-style by now (if you don't count an occasional suicide-bomber here or there). I don't think they'd be prepared to live in shelters again just to gain a few square kilometres of the holy land.
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