This is a rush transcript from "Special Report," August 8, 2014. This copy may not be in its final form and may be updated.
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BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: I'm not sure the battle is over. I think we've degraded their capabilities significantly. I think we've taken out the tunnels that we know about. There may be some that we don't know about. It took them years to build and I think they have to take into account the possibility that if they continue we'll continue to respond.
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BRET BAIER, ANCHOR: And that's exactly what happened. That was just moments before the end of the ceasefire, and just minutes after it ended Hamas launched a series of rockets. The Israeli military says dozens, 35 of them hitting Israel. We're back with the panel, Lightning Round. Nina, what about this, the prospects of moving forward?
EASTON: Well, the problem is that Hamas doesnt have a lot of incentive to keep a truce. For example, European powers now are supporting a U.N. plan that would make sure those tunnels are destroyed, make sure the rocket launchers are destroyed, and would hand over authority to the Palestinian Authority. If you're in Hamas' place, they have every incentive to keep on going.
BAIER: Marie Harf about the issue of Russia-Ukraine today at the State Department.
(BEGIN VIDEO CLIP)
MARIE HARF, DEPUTY SPOKESPERSON, STATE DEPARTMENT: Israel appeared ready to agree to extend the ceasefire while Hamas refused, started firing rockets against Israel, and continues to make maximalist demands.
(END VIDEO CLIP)
BAIER: She went on to talk about Ukraine and Russia in which she said the buildup of significant numbers of Russian troops is alarming. "We don't know what Russia is doing. Again, we see Russia saying one thing, doing another. Obviously this is very concerning to us." Juan?
JUAN WILLIAMS, SENIOR EDITOR, THE HILL: Well, I think what we're seeing is that there's a sense of Putin being defeated, and not only in terms of the sanctions, and now you have the Ukrainian Prime Minister Yatsenyuk saying he's going to have his own sanctions imposed on Russia. But also in terms of the effect of the American sanctions, Russia's flailing about. Putin is saying he's not going to ban the U.S. from sending in our poultry and the like. He's just hurting himself. But again, that's the question. If somebody is desperate in a fight, they do things that are crazy.
CHARLES KRAUTHAMMER, SYNDICATED COLUMNIST: For a desperate guy flailing about, he's done rather well. He pocketed Crimea, which the Russians have coveted for about 50 years. He's destabilized the Ukraine and he has the west falling about in its response. The one thing the United States ought to do is say if you invade, sectoral sanctions immediately.
BAIER: Quick, winners and losers.
KRAUTHAMMER: The loser is Hamas. It's lost its tunnel network it spent a decade building. It's lost half its missile arsenal or more, and it left Gaza in ruins. If you're an ordinary Palestinian, you say what have these people achieved other than ruin around us? If -- the one thing that we cannot do is to rescue them at the negotiating table. Any reconstruction, any opening of the borders through the Palestinian Authority, shut out Hamas.
Winner -- missile defense. The Democrats have opposed it for 30 years. It works. It's a key to the future and it neutralizes the weapon of the 21st century, missiles. America ought to look into getting the same thing for itself.
BAIER: Loser, the lightning of the lightning round. Nina?
NINA EASTON, COLUMNIST, FORTUNE MAGAZINE: Well, winner, the person who thinks he's the winner this week is Putin because he got to stick it in the eye of the West two times. He got to cut out food imports, which will hurt particularly Western Europe, and he got to invite Edward Snowden for an extended visit and for another three years. Loser to me is the safety and security of the American people once again. ISIS is expanded and is a clear and present danger to American security.
BAIER: Winner and loser?
WILLIAMS: Pat Roberts, the senator from Kansas rebuffed the Tea Party challenge. And in fact, you look at it, establishment Republicans in the Senate won every race against the Tea Party. The loser this week, Bret, I would say the Secret Service because, guess what, Joe Biden, they got to watch Joe Biden go swimming in the buff, and it's Friday. Anyway, but the other thing is then a baby got through the White House gate last night. Secret Service locked down the White House, full alert. Gee, a toddler just sneaked through the gate.
KRAUTHAMMER: Is the kid under arrest?
WILLIAMS: I think someone said he's on a long timeout.
BAIER: A long timeout. All right, skinny dipping vice president. That's it for the panel. But stay tuned for a special and unique marriage proposal.
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