In a major push, the government is rushing to place temporary housing at about 60 empty sites in the Israeli-occupied West Bank before national elections this fall.
The retaliatory U.S. attacks came on Tuesday as Israeli forces pounded southern Lebanon while targeting Hezbollah.
Opponents attacked Prime Minister Benjamin Netanyahu for halting strikes against Iran after a call with President Trump, saying that he was letting the United States make Israel’s decisions.
President Trump is grappling with his own version of the sort of Middle East crisis that beset his predecessors, and that he promised to avoid.
The conflict between Israel and Hezbollah, an Iranian-backed militia, is complicating efforts to end the war in Iran.
The power struggle between Iran and Israel to define the new rules of the Middle East plays out in Lebanon, which the other two countries have used to pursue their own ends.
President Trump has voiced his frustration with Prime Minister Benjamin Netanyahu of Israel, but it is not clear how able he is to rein in Israeli military action.
As it braces for a possible U.S.-Iranian peace deal, Israel now knows that if it responds forcefully to attacks by Hezbollah, Iran may strike Israel with missiles.
The Defense Department has increased the counterintelligence threat assessment to its highest level, and Israel is believed to have eavesdropped on American negotiations with Iran.
The Lebanese militant group’s attacks have caught Israelis off guard, forcing its political and military leaders to scramble for solutions.