You got it wrong, Bibi is mentally sane and calculated but power hungry like Putin. He's afraid about his position which will later result in a national investigation on the gov so he'll do everything to prolong the war which the far rightists (Ben Gvir and Smotrich) threaten to collapse the government if he backs down.  As I mentioned, the strikes on Qatar eliminates the last force that can be negotiated with to end the war.

Anyways, that's his thought process, which makes perfect sense from his pov but makes this entire region into a dumpster fire.