It looks like the war is reviving the political fortunes of both the Labor Party and Ehud Barack.
It was firmly mired in 3rd place, and at risk of dropping further, with polls showing their winning 8 seats in the 120 seat Knesset, and now the polls are showing 16-18 seats, which might put them in 2nd place.
To my mind, one of the real problems is not security, but the fact that the Labor Party has largely abandoned labor as a movement, and when there is that much buy-in on Thatchernomics, they lose a clear differentiator between them and Kadima, in particular.
It appears that most of Labor’s new support is coming at the expense of Kadima and other members of the coalition, so I think that Likud is still favored to win the election.