Hi, I'm Bill O'Reilly, thanks for watching this special edition of "The Factor" — The conflict in the Middle East. And that is the subject of this evening's "Talking Points Memo."

Like most things in life, in order to understand what's going on tonight in the Middle East, you must simplify the situation.

Israel wants peace. Most sane people understand that. They've withdrawn from Gaza, dismantled Israeli settlements on the West Bank, and like the folks in Northern Ireland, most Israelis simply want the violence to stop.

But the Islamic terrorists do not want peace. Both Hamas and Hezbollah continue to say Israel must be destroyed, Jews must die.

Therefore, you're not gonna have peace in the Middle East and when terrorists kidnap Israeli soldiers — or kill Israeli civilians — Israel is going to fight back.

So that's where we are tonight.

But there's a much bigger picture here, and all Americans should listen up. Hamas and Hezbollah are no different than Al Qaeda. These people are all in the same movement: that is Islamic fascism.

Right now you have two nations actively helping these terror groups — Iran and Syria. I mean come on! Hezbollah doesn't make rockets. They get them from Iran and other merchants of death. Iran is also encouraging the violence in Iraq, trying to gain nuclear weapons and creating chaos in the world's oil markets.

Clearly, ladies and gentlemen, Iran is the world's greatest threat. And right behind it are the terrorists who are not going to stop killing innocent people any time soon.

So what is the USA supposed to do? Well some Americans want retreat; some would allow Iran to do pretty much anything — Europe is in that category, so is the U.N., so is Russia and China. — Iran has lots of pals.

Even today left wing newspapers like The Boston Globe and The San Francisco Chronicle are calling for Israel to restrain itself.

"Talking Points" thinks Israel should act with as much restraint as possible. But The Globe and The Chronicle have no clue, nor does Howard Dean and most other far left politicians in America. They have no idea how to deal with Islamic fascism.

This is the main problem in the world today. China for example better wise up soon — higher oil prices are going to bankrupt that country. And we in America better wise up too, the Bush administration has made major mistakes in Iraq but Islamic fascism has to be defeated on the battlefield. Again, these terrorists are not going to stop.

So "The Factor" is going to now take an even harder line against Americans we believe are undermining the War on Terrorism, that includes the ACLU, the far left and people who are actually — if you can believe it — rooting against America and Israel. They want us to lose. They want us to lose. That is simply unacceptable.

And that's "The Memo."

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—You can catch Bill O'Reilly's "Talking Points Memo" and "Most Ridiculous Item" weeknights at 8 and 11 p.m. ET on the FOX News Channel and any time on foxnews.com/oreilly. Send your comments to: oreilly@foxnews.com