Israel's reality transformed overnight this weekend and what looks like a major war is unfolding. Events are progressing rapidly, so in this week's Haaretz podcast, editor in chief of Haaretz, Aluf Benn, and Haaretz senior analyst Yossi Melman explain in conversation with Allison Kaplan Sommer how a country that has prided itself with having the best intelligence in the world was hit hard by an unprecedented surprise attack from the Gaza Strip.

Benn says the Hamas orchestrated attack – that has already claimed the lives of over 600 Israelis - was a "total surprise," and that "there was no intelligence indicating anything remotely like this."

Even though there was a sense that Israel's enemies would take advantage of its inner rifts, "none of the warnings included anything similar to what happened yesterday."

According to Benn, "This is the worst blow to Israel in any war, since 1948, and of any terrorist attacks inside Israel or abroad. In 1973 Israel was taken by surprise, but the fighting took place far away from civilians. Now this is first and foremost an attack against civilians, and for the first time we have dozens of military prisoners of war and civilians taken hostage in Gaza. People are desperately trying to find out what happened to their family members. We know people, friends, that have children who are missing or dead. It's a very sad, unprecedented situation for all of us."

Melman addresses the "huge failure" of Israel's Intelligence. "When you talk to people in the intelligence community, they are confused, they are puzzled, they don't know what happened. They have no explanation," he says. "Certainly it was a huge failure, Israel has been prided with having the best intelligence in the world, and the intelligence failed. For many Israelis, what happened on Saturday, 50 years and one day after the Yom Kippur War started, is reminiscent of the same failure. But there is a big difference: Before the war in 1973, the intelligence was there. Israel had a lot of pieces of intelligence but didn't know how to read it or didn't want to analyze it in the correct way. This time there was nothing."

The Gaza Strip is an area Israel was supposedly watching very closely, so having hundreds of militants cross into Israel on a holiday morning was unimaginable. "It's a failure of the military intelligence, it's a failure of the domestic security service - the Shin Bet – both the organizations have the technological means to listen to the other side, to recruit agents for human intelligence. It's a huge machine of intelligence gathering that didn't function."

Looking forward, both Benn and Melman think the wounds will take years to heal. "It's going to take time for the public to realize what happened," Benn says. "We are talking about hundreds of bereaved families, hundreds of hostage families, it's still unthinkable. I'm hearing horrible stories from people I know."