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In the ongoing Israel-Hamas war, an information battle is unfolding on social media. The intentional and unintentional dissemination of false information including misleading images, sensationalized narratives, fake news, and the use of AI have been pivotal in shaping public opinion and assisting regional actors in achieving their domestic and international objectives. This paper aims to understand how the rapid diffusion of misinformation and disinformation on both sides has been used as a strategy of war, contributing to instability, and the potential for a broader conflict. To examine the purposes and effects of deceptive or manipulated media, this research will utilize a discourse analysis in order to study the construction and function of false narratives and the implications they pose for both the Middle East and beyond. We find that spreading disinformation has played a central role in increasing hate crimes against Jewish, Muslim, and Arab communities. This has fostered a polarized and partisan environment, thus hindering any possibility of reaching a consensus or peaceful solution to the war. By combatting false news and promoting reliable information, social media can serve as a mechanism to bridge divides and put an end to the current conflict.