Which ISP are you on?
There are more ISP problems now than before, so it might be the cause. I've had similar problems.
The latency is only half of the deal. If you backtrace from an American/European IP, it'll show massive amounts of packet loss. This mostly happens now with Bezeqint (014) and Baraq (013), I think. Currently, the best ISP for gaming is Zahav Smile (012), but they suck as well. They're only good if you're going to game, so getting a 1.5mbit/128kbit connection for like 30NIS shouldn't be much of a problem.