Of course he doesn’t want to de-escalate the situation.
If he did that, things might calm down and fewer people will vote based on his promises of being strong on security. Also if he did that, his hard-right backers (who need a hot conflict to keep taking Palestinian land politically acceptable) will attack him for being ‘soft’ on security.
The logic of it all is genocide of course, but Bibi wants that if the alternative is him being out of office and back in court defending himself against corruption charges.