Taking off from summersquash's post, I am posting my own question about fares: I didn't book yet, but I got the following fare for my trip, which is NY to Tel Aviv (via Madrid) to Barcelona to Madrid and back to New York: airfare would be $1210 with tax (with Iberia Airline). We are going for the first two weeks of July. Am I getting a good deal?

I want to make sure I'm understanding the question first. Are you going to spend time in Madrid and Barcelona, or are these just stops along the way?

I'm not sure what Tel Aviv would add faire-wise, so it's tough to determine if it's a good fare.
For what it's worth, I got Detroit-Madrid, Paris-Detroit for $660.

I am going to be spending time in all of these cities--5 days in Israel, 5 days in Barcelona and three days in Madrid.

Considering that you are making 2 stopovers, that doesn't seem bad to me. I don't know your exact dates, but I did a search on Orbitz (using dates in July) and I didn't find anything better. Maybe one of our European friends knows of a discount airline from Spain to Tel Aviv? In that case you could buy a ticket to Spain, travel by train from Madrid to Barcelona, then fly to Tel Aviv seperately. If not, this might be as good as it gets. Good luck.