Rights under Israel aviation services law
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Israeli law gives you compensation in case of cancellation. A delay of 8 hours, at take off, is considered cancellation. However, it's not clear how this applies for you.
This law forum question (Hebrew) describes a very similar case (small delay of first section leading to missed connection), and the lawyer says they're not entitled to compensation, because there was no delay at take off. However, in that case the passenger did fly to the final destination with the same carrier the next day.
In case of cancellation, you'd be entitled to either an alternative flight or a full refund, as well as compensation of about 3,000 ILS (depending on distance). I don't think you can claim the refund (because the flight wasn't cancelled), but perhaps you can get the refund.
It further depends on what you did with the return leg. If you used your return ticket, you're unlikely to get a full refund. If you bought an alternative 2-way ticket, there's a better chance.
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Source: stackoverflow.com
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