Palestinian terrorists fired five mortar shells and two rockets at southern Israel on Tuesday, March 13, after a reported Egyptian-brokered cease-fire between terrorist factions in the Gaza Strip and Israel came into effect,The Jerusalem Post reported. An Egyptian security official told Reuters on Tuesday that both sides had “agreed to end the current operations,” with Israel giving an unusual undertaking to “stop assassinations,” and an overall agreement “to begin a comprehensive and mutual calm.” Islamic Jihad escalated its rocket fire into Israel on Monday, striking as far north as Gedera as Egyptian diplomats worked to broker a cease-fire. In total, over 200 rockets were been fired into Israel since hostilities began on Friday, including 50 with ranges of over 20 kilometers. A senior IDF intelligence officer said that Islamic Jihad was currently focused on “saving face” and creating a “victory image” with which it will be able to claim that it defeated the IDF. In reality, the officer said, Islamic Jihad has suffered heavy losses throughout the four days of fighting. The officer said that Iran was actively encouraging Islamic Jihad to continue firing rockets into Israel.

Pressured by tightened Western economic sanctions and a burgeoning black market for dollars, Iran’s central bank has loosened its strict foreign exchange policy, allowing money traders there to sell dollars for rials at the unofficial market rate, The New York Times reported Tuesday, March 20. Few Iranian money changers had been willing to sell dollars at the official rate, 12,260 rials to the dollar, because it was unprofitable for them. The glaring absence had caused a surge in illicit money changing in Iran, pushing the unofficial market rate to about 19,000 rials to the dollar. Economists said the eased exchange rate restriction, which was announced on Sunday, appeared to be a bow to reality. Money changers would now be required simply to report the rate at which they sell dollars for rials, providing the central bank with more precise information about the domestic demand for dollars. But the eased policy creates new risks for Iran’s government by raising the likelihood of capital flight, as Iran’s economic isolation increases because of the sanctions imposed by Western powers in response to its nuclear program.

Israel Defense Forces Chief of Staff Lieutenant General Benny Gantz and U.S. Chairman of the Joint Chiefs of Staff General Martin Dempsey met on Monday, March 19, in Washington, Ynet reported. Dempsey stated after the meeting that “regular and candid dialogue is critical as we face common threats and challenges.”According to an announcement posted on Dempsey’s Facebook page, the meeting focused on “talking about growing concerns with Iran and Syria,” Dempsey said, adding: “I’m glad we had the opportunity to discuss issues of importance to our two countries.” Speaking on Monday before the Knesset Foreign Affairs and Defense Committee, Israeli Defense Minister Ehud Barak hinted that it was preferable not to carry out a strike against Iran without the U.S. government’s consent. Barak believes that “Israel must have increased levels of sensibility and awareness to the demands that stem from the reality in the U.S. and implement a policy of strengthening the special relationship.” “The security relations and strategic cooperation between Israel and the U.S. have reached levels of greater depth than we have ever known in the history of the relationship between the two countries,” Barak said.

Syria has been arming and training Hizballah fighters in the use of advanced antiaircraft weapons in recent months, Haaretz reported Sunday, March 18. A senior officer in the Israel Defense Forces Northern Command says hundreds of fighters were taught to use surface-to-air missiles in Syria and Iran. IDF officers are worried by two developments involving Syria and Hizballah that could change the balance of power in the region. The first is the transfer of huge quantities of surface-to-air missiles; the second, the transfer of chemical and biological weapons. “The potential of escalation in Lebanon is huge, and Hizballah continues to strengthen with regard to long-range weaponry and potential ‘surprises’ on the battlefield,” the senior officer said. He also said the Iranian involvement in Lebanon has transformed from a “fingerprint” to “a huge handprint.” The IDF points to a “regular transfer” of weapons from Syria to Hizballah that began even before the rebellion against President Bashar Assad’s government. Still, since Assad lost complete control, the weapon transfers have increased, and include drones and shore-to-ship missiles.

The U.N. Security Council was to weigh a draft statement on Tuesday, March 20, warning Syria of “further measures” if it fails to cooperate with peace envoy Kofi Annan, as fresh violence struck Damascus, Agence France Presse reported. Despite hopes of a breakthrough at the Security Council, Russia on Tuesday made it clear its support of any U.N. statement on Syria was conditional. “We are ready to back the mission of U.N. and Arab League representative Kofi Annan and the proposals to the government and opposition to Syria,” Foreign Minister Sergei Lavrov said. But the council “should approve them not as an ultimatum.” U.N. chief Ban Ki-moon warned on Tuesday that: “We have no time to waste, no time to lose, because one minute, one hour of delay will mean more and more people dead.” On the ground, fresh clashes broke out Tuesday between security forces and army deserters in Damascus. At least three rebels and a member of the security forces were killed on Monday in clashes in the capital. Elsewhere, four civilians were killed on Tuesday in Homs and three others in Rastan.