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The bill, which was approved of unanimously on Tuesday, says that the Israeli parliament would dissolve, with new elections to be held on 25 October or 1 November, with the date to be set after further negotiations.
Israel will provide housing allowances for veterans of the South Lebanon Army, a militia group that fought on Israel's side in its brutal invasion of Lebanon in 1978.
Israel will support the oil agreement only if the US oversees the whole process and if Iran behaves transparently, as it seeks to avoid weaponry being shipped, according to an Israeli broadcaster.
Israeli military commanders believe that the Assad regime will stop Iran smuggling weapons systems to Hezbollah following a strike on Damascus Airport last week, according to Israeli media.
Israeli Foreign Minister Yair Lapid is visiting Turkey where he will meet with his counterpart Mevlut Cavusoglu on Thursday as Ankara and Tel Aviv repair frosty bilateral ties.
Israel is increasingly taking matters into its own hands with its ramped-up attacks on Iranian scientists and nuclear sites, current and former intelligence officials told CNN