The Lavon Affair / Operation Susannah
In the summer of 1954, a series of bombings in Egypt turned into a political scandal that would follow Israel for decades. The operation, known as Operation Susannah, involved Egyptian Jews recruited by Israeli military intelligence to place explosives at civilian targets associated with Egyptian, American and British interests, including cinemas, libraries and American educational facilities.
The attacks were intended to create the appearance that Egyptian opposition groups were responsible, making the operation a classic example of a false flag campaign as described in historical accounts. The operation was eventually exposed, triggering a major political crisis inside Israel.
Defense Minister Pinhas Lavon was forced to resign in connection with the affair, which later became known by his name. Israel continued to deny involvement publicly for decades, until the surviving agents were officially honored in 2005, when President Moshe Katsav presented them with certificates of appreciation.