Yaacobi was a Knesset member on behalf of the Labor Party and served as transportation minister, economics minister and communications minister.
Yaacobi was born in Kfar Vitkin in 1932. He studies economics and political science at Tel Aviv University and attended a continuing education program at Harvard University and the University of London.
Between the years 1960 and 1961 he served as the assistant to Israel's agriculture minister. He was first elected to the Israeli parliament in 1969 and served as a Knesset member for 23 years.
In 1972, he was appointed deputy transportation minister, and in 1974 former Prime Minister Yitzhak Rabin appointed him transportation minister, a position he held for seven years.
He served as minister of economics and planning and as communications minister in the national unity government which was established in 1984.
Yaacobi also served as Israel's ambassador to the United Nations, chairman of the Israel Electricity Corporation and chairman of the Israel Ports and Railways Authority. He also wrote a number of books, including three children's books.
Prime Minister Ehud Olmert expressed his sorrow over Yaacobi's death.
"Yaccobi was a rare combination of a man of action in the political life, a son of the agricultural settlement and a man of education. He wrote articles and books on state, society and government issues, alongside poetry books.
"I send my condolences and the government's condolences to the Yaacobi family," Olmert said.