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This is a garbled account of the attack that began the Yom Kippur War, or the October War, between Israel and an alliance of Syria and Egypt. The latter launched an attack on Israel (to recover Egyptian and Syrian territory previously occupied by Israel) on Yom Kippur, the most solemn of Jewish holidays, when the whole country grinds to a halt.
Jewish law certainly does not require refraining from self-defense on the Sabbath in a life-or-death situation, and in any case, in 1973 when the war occurred, virtually no members of the Israeli Defense Force were strict adherents to Jewish law. It's debatable whether the timing of the attack hurt or helped the Israeli mobilization in response. Some soldiers' minds may have been on other things when the attack began. On the other hand, Israel's roads were clear of traffic, and the reservists' rush to their mobilization depots was smoother than it would otherwise have been.