Summary: For nearly ten years a war the world has chosen to ignore has been dragging on in North Sinai with non-combatants caught between the Egyptian military and ISIS-allied fighters.
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I’m not sure I’d describe a report from the ardently pro-Israel WINEP as “senior defence analysts scratching their heads.” It’s a bit of fairly thin advocacy (as too much of what that “think tank” produces.) Israel has had a buffer force on its northern and southern borders paid for by other tax-payers for decades. That enables Israel’s (citizen) armed forces to maintain a much lower (cheaper!) state of readiness than might otherwise be the case. In particular, it enables 500 Israeli employees to generate income, rather than consume government resources from taxes. No one likes a subsidy being withdrawn!
What is interesting, though, is that it appears to be taking place at the same time as Trump’s Deal of the Century. That suggests either that the US feels there is no risk on Israel’s southern flank, or this has been announced without permission from Kushner.