In the years following the Six Day War, all sectors
of the economy prospered and flourished. During
this period Israel consolidated her position in the world, although
the Arab nations refused to accept the new reality. The armies of Egypt
and Jordan embarked on a war of attrition. Frequent attempts were made
to infiltrate the borders and penetrate IDF positions and there were
many incidents when shots were fired at Israeli soldiers. The war of
attrition lasted for 17 months. During this time 721 Israelis were killed,
594 of them soldiers.
The Arab states continued to reequip their armies and train their
soldiers. Gamal Abdel Nasser died in Egypt, and was succeeded by Anwar
Sadat. On October 6, 1973 (Yom Kippur 5734) war broke out, when Egypt
and Syria attacked Israel. Minister of Defense Moshe Dayan declared
that “...the Third Temple (the third commonwealth of Jewish sovereignty)
is in danger.”
The Egyptian forces broke through the fortification line on the
Suez Canal and overran the Sinai Peninsula. At the same time, the
Syrians pushed towards the Golan Heights in an attempt to penetrate
the valley and drive a wedge into Israel. Since warning signs had
been ignored or misinterpreted, Israel was totally surprised by the
onslaught. The country was unprepared, in the midst of observing Yom
Kippur. The army swiftly regrouped and mobilized reserve forces, while
the soldiers in the front lines struggled to hold back the onslaught.
Militarily the outcome of the war was a victory for the Israeli forces.
Under adverse conditions they succeeded in seizing the initiative
and pushing the battle into enemy territory. At the war’s end
the IDF were poised 40 kilometers (28 miles) from Damascus in the
north, and beyond the western bank of the Suez Canal on the road to
Cairo in the south. In addition, the Israeli army succeeded in encircling
and cutting off Egypt’s Third Army in Sinai.
The war ended on October 24, but the IDF’s regular and reserve
soldiers were confined to their outposts for many more months. The
Yom Kippur war took a very heavy toll: 2569 soldiers fell in battle
and more than 300 were taken prisoner.
After the cease fire took effect, further negotiations culminated
in the signing of separation agreements. Israel withdrew from the
areas captured during the war and arrangements were made for 
the separation of forces on both sides of the border. Territory held
by Israel prior to the outbreak of the war was transferred to UN forces
stationed in the separation zones.
The war created a great rift among the people. Confidence in the
army’s intelligence-gathering ability was severely shaken. Accusations
were leveled at many leaders in the political and military fields,
revealing grave defects and dividing the nation. A process of sober
thought followed the sense of elation and euphoria engendered by the
Six Day War. From the political point of view, the war brought about
a transfer of power in Israel. In 1977, for the first time in the
history of the State, the Likud party rose to power and the Labour
party sat in opposition.