I have heard or picked up in a newspaper that Israel suspended its EC261 equivalent rule in order to encourage non-Israeli airlines to resume flights to Israel.

Also, a few years ago an aviation lawyer who works (worked) for “DLA Piper” told me that Israeli airlines do not have a “duty of care” unlike European airlines. (I do not know if that has changed, but l think not).

However this only impacts if one’s ticket starts and ends in Israel