Defense Minister Liberman said at the Herzliya conference that the PA decision to cut electricity to the Gaza Strip was an attempt to drag Hamas to war with Israel and had not been coordinated with Israel.
Liberman added that Hezbollah is exploiting the volatile situation in Syria to gain a new front against Israel in the Golan and to smuggle advanced weaponry for itself and strengthen its bases opposite Israel's borders. Liberman warned Syria that it would be held responsible for Hezbollah smuggling, stating that "when it reaches the finishing line [smuggling weapons], we will not hesitate to act."
Liberman also said that he sees the only solution for peace in a regional peace agreement with all the moderate Sunni states including Kuwait and Saudia Arabia, with agreement with Palestinians being an outgrowth of this agreement. Such an agreement would add 45 billion dollars to the State of Israel.
He added that there was no possibility of a direct agreement as "Israel will never offer what Olmert offered to the Palestinians and they refused it."