The prisoner swap and money freed by the Biden administration has not been used by Iran because it's still sitting in the bank. It is very possible that Iran may have a hand in this if there were some covert opp occurred recently within Iran by Israeli intelligence. It's more likely that the recent crack down on protesters and the mosque raid during Ramadan precipitated this atrocity.
The continued expansion of settlements and displacement of Palestinians often lead to violence when the police or IDF are involved. The international community already consider the expansion to be illegal. That doesn't stop the hardliners and the American Evangelical community from financially supporting the expansion. They have their reasons.
We may have come a long way as humans when it comes to just blindly accepting organized atrocities but we still have far to go.
Hamas should not have been supported and encouraged by past Israeli governments that it what it is. Autocratic leaders like to support other autocratic leaders.
If anyone thinks that this problem is too difficult to solve, they need to look at the Camp David Accords Arab-Israeli peace deal brokered by three world leaders back in the 70s. That deal signed by President Jimmy Carter, Egyptian President Anwar Sadat, and Israeli Prime Minister Menachem Begin still holds to this day.
Is there political will to make that happen right now? No. The Palestinians don't really have bargaining power in the deal other than the promise of non-aggression and hardliners in Israel want the land.
The irony in all this is that the amount of money spent on military support over the many decades could have been used to support a Marshal Plan-style redevelopment within a two-state solution.
But, that takes political will.