From an article on popular Israeli website nana10, it has been announced that Israel will finally (officially) get the iPhone through national carrier support.
As of now, the announcements only state that Pelephone will be carrying the device and that they've been told to "get ready" for the launch. What's perplexing is why Orange isn't anywhere near these negotiations. They have a major presence in Israel and surrounding nations. Plus they already have deals with Apple to carry the iPhone, and it has been reported that they have upwards of 1 million iPhone users on their network.
Either way, this is good news for Israel, and for Apple. The tech scene over there is so involved in telecommunications and innovating for mobile environments, it's a natural fit for the country to get official iPhone support. With the upcoming release of iPhone OS 3.0, Apple announced that Hebrew would officially be supported as a language, so that definitely gave a tiny clue as to what was coming.
Of course, unlocked iPhones are literally a dime a dozen over there. Certain pockets of software developers stay in business by selling unlocked iPhones with Hebrew pre-installed, so it makes sense for Apple to get rid of this foul play and allow even more people to innovate on the already burgeoning platform.