Permissive conditions faze Israelis (7-5)
I believe the answer is:
laissez-faire
'permissive' is the definition.
(thesaurus)
'conditions faze israelis' is the wordplay.
'conditions' indicates anagramming the letters (letters must be in a new condition).
'faze'+'israelis'='fazeisraelis'
'fazeisraelis' anagrammed gives 'LAISSEZ-FAIRE'.
(Other definitions for laissez-faire that I've seen before include "Practice of non-interference" , "Policy of non-interference" , "not getting involved" , "Doctrine that governments should not interfere in commercial matters" .)