He returned to Israel in February 1983 after being appointed Minister of Defense, replacing Ariel Sharon, who had been forced out of office following the Kahan Commission's report on the Sabra and Shatila massacre.
Notwithstanding the dissuading conclusions of the Kahan report, Sharon would later become Prime Minister of Israel.
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According to Robert Fisk, Osama bin Laden cited the Sabra and Shatila massacre as one of the motivations for the 1996 Khobar Towers bombing, in which al-Qaeda attacked an American Air Force housing complex in Saudi Arabia.
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At Sabra and the Shatila refugee camp in Beirut, Lebanon in September 1982, Foley shot a "series of pictures of victims and survivors of the Sabra and Shatila massacre", for which he and AP won the 1983 Pulitzer Prize for Spot News Photography.
He has resided extensively abroad, including Stanford University in the 1980s and Yonsei University in Seoul in 1988 and has visited Israel and Lebanon repeatedly, writing a chamber cantata Den Toten von Sabra und Chatila to poems by the Palestinian poet Tawfiq Ziad (1982).