4 September – The Israeli new shekel (NIS) is introduced. It does not replace the old shekel as Israel's official currency until 1 January 1986.
5 October – Ras Burqa massacre: An Egyptian soldier shoots and kills seven Israeli vacationers (including four children) at Ras Burqa, a beach resort in the Sinai peninsula.
21 November – Jonathan Pollard, a US naval intelligence analyst who spied for Israeli intelligence, is arrested by the FBI at the gates of the Israeli Embassy in Washington while trying to seek asylum there.
9 April – Sana'a Mouhadly of the Syrian Social Nationalist Party detonated herself in an explosive-laden vehicle in Lebanon, killing two Israeli soldiers and injuring two more, becoming the first reported female suicide bomber.[5]
21 May – The Jibril Agreement – Israel releases 1,150 security prisoners being held in Israeli prisoners in exchange for three Israeli soldiers captured during the 1982 Lebanon War.
25 September – An Arab terrorist cell takes over an Israeli yacht off the coast of Larnaca, Cyprus and kills its three Israeli occupants. An elite section of the PLO known as Force 17 claims responsibility for the attack.
7 October – The Italian cruise ship MS Achille Lauro is hijacked in the Mediterranean Sea by Palestinian Arab militants. The hijackers' original aim was to use the ship to slip into Israel. However, crew members discover them cleaning weapons, and the group then seizes control of the ship; holding the passengers and crew hostage, they direct the vessel to sail to Tartus, Syria, and demand the release of 50 Palestinian Arabs then in Israeli prisons. During the incident, the militants kill the passenger Leon Klinghoffer, a 69-year-old wheelchair-using Jewish American, and throw him overboard.
27 December – Palestinian Arab militants from Abu Nidal's militant group open fire at the counters of El Al in the airports of Rome and Vienna. 18 Israelis were killed and 40 were injured.[6]
Notable Israeli military operations against Palestinian militancy targets
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4 August – Defence Minister Rabin launches an Iron Fist policy in West Bank.[7]
1 October – After three Israeli civilians were killed on board a yacht off the coast of Cyprus by the PLO's Force 17, the Israeli Air Force carried out Operation Wooden Leg, striking the PLO base in Tunis and killing 60 PLO members.
^Hiltermann, Joost R. (1991) Behind the Intifada. Labor and Women's Movements in the Occupied Territories. Princeton University Press. ISBN0-691-07869-6 p 114