During Halutz's term, Israel purchased F-15E and F-16 fighter jets, capable of strategic bombing in all weather conditions.

On February 23, 2005, Israeli defence minister Shaul Mofaz announced that Halutz would be the next IDF chief of staff.

On June 1, 2005, Halutz was officially appointed the eighteenth chief of staff of the Israel Defense Forces and was awarded the rank of Rav-Aluf (lieutenant general).

Halutz stated that he made the decision "based on deep-rooted values, those of strong ethics, loyalty to the organization and integrity."

[5] On the night of July 23, 2002, an IAF warplane dropped a one-ton bomb on a Gaza apartment building where senior Hamas commander Salah Shahade was sleeping together with his wife and family.

Israel's prime minister Ariel Sharon called the operation a success in the war on terror, but political critics pointed out that it was carried out hours after Hamas leader Ahmed Yassin issued a statement offering an end to suicide bombing, and just as the Palestinian Authority was working out a deal with Hamas to end terror attacks.

There was at least one revenge attack directly related to the Shehade bombing – on July 31 at the Hebrew University of Jerusalem, killing 7 civilians including 2 Americans.

have criticized the attack, proclaiming that the intentional dropping of a one-ton bomb in the middle of the night on a dense civilian neighborhood is tantamount to a war crime.

Halutz, who was abroad during the bombing itself but was still accountable as IAF commander, gave an interview to Haaretz, published on August 21, 2002.

All those bleeding hearts who have the gall to use Mafioso methods of blackmail against fighters – I don't recall that they ever threatened to turn over one of the arch-terrorists, the terrorists who have killed many Israeli civilians, to The Hague.

But not to be a traitor.Interviewer: Are you suggesting that members of the Gush Shalom ("Peace Bloc") group who made those comments should be placed on trial for treason?

Who would have believed that pilots of the air force would find their cars spray-painted with savage graffiti because of a mission they carried out?Halutz's harsh expression caused a public controversy, with anti-Occupation groups demanding his resignation but right-wingers and centrists backing him.

Halutz complied and submitted an essay saying: The fact that uninvolved civilians and innocent children were killed, saddens me.

A proof for this, is that the operation was already postponed number of times, because information we had about probable innocents around the terrorist Salah Shehade....

I (give great value) to the issue of responsibility distribution between the commander and his subordinates, between the pilots and those who sent to the mission, and therefore I told (them) to sleep well at nights.In 2005, the Supreme Court accepted Halutz's reply and rejected the petition.

MK Gideon Sa'ar (Likud) said the Halutz appointment to chief of staff is a winning answer to the far left.

"[10] On July 24, 2006, it was reported that IDF Radio had broadcast details of orders issued by Halutz: "Army chief of staff Dan Halutz has given the order to the air force to destroy 10 multi-storey buildings in the Haret Hreik ("Dahiya") district (of Beirut) in response to every rocket fired on Haifa," a senior air force officer told army radio on Monday [July 24].

[15] On August 15, 2006, it was revealed that Halutz sold off his investment portfolio three hours after two Israeli soldiers were captured by Hezbollah during the Zar'it-Shtula incident, leading to the war.

Halutz admitted selling about $28,000 worth of his stocks within three hours of Hezbollah's kidnapping of two Israeli soldiers—the action that sparked the conflict.

In a news conference in Tel Aviv, Halutz said the stock sale was unrelated to the outbreak of war and criticized the disclosure of his personal financial information.

Because the image will be the loss of 1,300 dead, 240 abducted, only a portion of whom have returned, and the destruction and displacement of 200,000 [Israeli] refugees in their country.