The collapse of the Georgian offensive represents not only a disaster for Israel and its US-backed leaders, but another blow to the myth of Israel's military prestige and prowess. Worse, Israel fears that Russia could retaliate by stepping up its military assistance to Israel's adversaries including Iran.

"Israel is following with great concern the developments in South Ossetia and Abkhazia and hopes the violence will end," its foreign ministry said, adding with uncharacteristic doveishness, "Israel recognizes the territorial integrity of Georgia and calls for a peaceful solution."