After the war, he was one of the pioneers of the jet age in the IAF. He commanded the first Meteor, Ouragan and Mystère squadrons. In 1956 Peled participated in Operation Kadesh, the Suez or Sinai campaign, in which his Mystere jet was shot down by Egyptian anti-aircraft fire and he became the first Israeli pilot to use an ejector seat. He was rescued by an IAF Piper light aircraft.