Prime Minister of Israel – Benjamin Netanyahu (Likud)
President of Israel – Ezer Weizman
Chief of General Staff - Amnon Lipkin-Shahak until 9 July, Shaul Mofaz
Government of Israel - 27th Government of Israel
22 January – The launch of the Israeli reconnaissance satellite Ofek-4 fails.
1 April – The Azrieli Center complex of skyscrapers officially opens, becoming the tallest building in Israel (Azrieli Center Circular Tower stands at 187 m).
9 May – Dana International, a transsexual Israeli pop singer, wins the Eurovision Song Contest 1998 held in Birmingham, UK with the song "Diva".
9 July – Shaul Mofaz, is appointed as the 16th Chief of Staff of the Israel Defense Forces.
26 November – Miss Israel, Linor Abargil, wins the title of Miss World 1998.
The most prominent events related to the Israeli–Palestinian conflict which occurred during 1998 include:
23 October – Benjamin Netanyahu and Yasser Arafat sign the Wye River Memorandum which details the steps to be taken by the Israeli government and the Palestinian Authority to implement the earlier Interim Agreement of 1995.
Notable Palestinian militant operations against Israeli targets
The most prominent Palestinian militant acts and operations committed against Israeli targets during 1998 include:
29 October – Kfar Darom bombing
6 November – Jerusalem bombing
Notable Israeli military operations against Palestinian militancy targets
The most prominent Israeli military counter-terrorism operations (military campaigns and military operations) carried out against Palestinian militants during 1998 include:
The founding of the communal settlement Ahuzat Barak.
13 June - Abdallah El Akal, actor
2 November - Nadav Guedj, singer
20 January – Zevulun Hammer (b. 1936), Israeli politician.
10 March - Rabbi Hayim David HaLevi (b. 1924), Chief Rabbi of Tel Aviv.
14 May – Yitzhak Modai (b. 1926), Israeli politician.
16 May – Idov Cohen (b. 1909), Romanian-born Israeli politician.
20 May – Jacob Katz (b. 1904), Hungarian-born Israeli historian.
13 June – Nissim Aloni (b. 1926), Israeli playwright.
29 September – Nechama Hendel (b. 1936), Israeli singer, actress, guitarist and entertainer.
