Israel: A Bad Brand in World Markets

By Ramzy Baroud

In an important step toward the economic isolation of Israel due to its genocide in Gaza, Norway’s Government Pension Fund Global has decided to divest from yet more Israeli companies.

Norway’s sovereign wealth fund is the world’s largest, with total investments in Israel once estimated at $1.9 billion. The decision to divest was taken gradually but is consistent with the Norwegian government’s growing solidarity with Palestine and rising criticism of Israel.

Taking a leading role along with Spain, Ireland, and Slovenia, Norway has been a vocal European critic of the Israeli genocide and man-made famine in Gaza, actively contributing to the International Court of Justice’s investigation into the genocide, and formally recognizing the state of Palestine in May 2024. This diplomatic and legal stance, coupled with its financial divestment, represents a coherent and escalating effort to hold Israel accountable for the ongoing extermination of Palestinians.

The Israeli economy was already in a state of free-fall even before the genocide. The initial collapse was related to the deep political instability in the country, a result of Israeli Prime Minister Benjamin Netanyahu and his extremist government’s attempt to co-opt the judicial system, thus compromising any semblance of “democracy” remaining in that country. This resulted in a significant lowering of investor confidence.

The war and genocide, beginning on October 7, 2023, only accelerated the crisis, pushing an already fragile economy to the brink. According to reports from the Israel Ministry of Finance, foreign direct investments in Israel fell by an estimated 28 per cent in the first half of 2024 compared to the same period in 2023.

Any supposed recovery in foreign investments, however, was deceptive. It was not the outcome of a global rallying to save Israel, but rather a consequence of a torrent of US funds pouring in to help Israel sustain both its economy and the genocide in Gaza, along with its other war fronts.

Israel’s Gross Domestic Product was estimated by the World Bank to be around $540 billion by the end of 2024. The war on Gaza has already taken a considerable bite out of Israel’s entire GDP. Estimates from Israel itself are complex, but all data points to the fact that the Israeli economy is suffering and will continue to suffer in the foreseeable future. Citing reports from the Bank of Israel and the Ministry of Finance, the Israeli business newspaper Calcalist reported in January 2025 that the cost of the Israeli war on Gaza had already reached more than $67.5 billion. That figure represented the costs of the war up to the end of 2024.

Keeping in mind that the ongoing war costs continue to rise exponentially, and with other consequences of the war, including divestments from the Israeli market by Norway and other countries, future projections for the Israeli economy look very grim. The Israeli Central Bureau of Statistics reported that the Israeli economy, already in a constant state of contraction, shrunk by another 3.5 per cent in the period between April and June 2025.

This collapse is projected to continue, even with the unprecedented US financial backing of Tel Aviv. Indeed, without US help, the precarious Israeli economy would be in a much worse state. Though the US has always propped up Israel, with nearly $4 billion in aid annually, the US help for Israel in the last two years was the most generous and critical yet.

Israel is the recipient of $3.8 billion of US taxpayer money per year, according to the latest 10-year Memorandum of Understanding signed in 2016. Equally, if not more valuable than this large sum are the loan guarantees, which allow Israel to borrow money at a much lower interest rate on the global market. The backing of the US has, therefore, enabled investors to view the Israeli market as a safe haven for their funds, often guaranteeing high returns. This applies to the Norwegian sovereign wealth fund as it did to numerous other entities and companies.

Now that Israel has become a bad brand, affiliated with unethical investments due to the genocide in Gaza and growing illegal settlement expansion in the West Bank, the US, as Israel’s main benefactor, has stepped in to fill the gaps.

The US emergency supplemental appropriations act of April 2024 allocated a total of $26.4 billion for Israel. While much of the money was earmarked for defense expenditures, in reality, most of it will percolate into the Israeli economy. This amount, in addition to the annual military aid, allows the Israeli government to minimize spending on defense and allocate more money to keep the economy from shrinking at an even faster rate.

Additionally, it will free the Israeli military industry to continue producing new, sophisticated military technology that will ensure Israel’s continued competitiveness in the arms market. The military-industrial complex, a significant part of the Israeli economy, is thus not only sustained but given a fresh impetus by American aid, ensuring the war machine continues to function with minimal financial disruption.

All of this should not diminish the importance of divestment from the Israeli financial system. On the contrary, it means that divestment efforts must increase significantly to balance out the US push to keep the Israeli economy from imploding.

Moreover, this should also make US citizens, who object to their government’s role in the genocide in Gaza, more aware of the extent of Washington’s collaboration to save Israel, even at the price of exterminating the Palestinians. Indeed, the flow of funds from the US is not a passive action; it is an active collaboration that directly enables the Israeli genocide in Gaza.

Ramzy Baroud is a journalist, author and the Editor of The Palestine Chronicle. He is the author of six books. His forthcoming book, ‘Before the Flood,’ will be published by Seven Stories Press. His other books include ‘Our Vision for Liberation’, ‘My Father was a Freedom Fighter’ and ‘The Last Earth’. Baroud is a Non-resident Senior Research Fellow at the Center for Islam and Global Affairs (CIGA). His website is www.ramzybaroud.net

Jordan Times

CrossFireArabia

CrossFireArabia

Dr. Marwan Asmar holds a PhD from Leeds University and is a freelance writer specializing on the Middle East. He has worked as a journalist since the early 1990s in Jordan and the Gulf countries, and been widely published, including at Albawaba, Gulf News, Al Ghad, World Press Review and others.

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Trump, Netanyahu Rift Hits Rock Bottom: View From Amman

By Saleem Ayoub Quna

The Epic Fury Operation launched by the US against Iran in February 2026, will go down in modern history as the first open military conflict, where a superpower like the United States, has willingly and openly played the role of a war-proxy, on behalf of its smaller ally, Israel.

The difference of attitude between the two close allies, US and Israel, in relation to what they perceived as Iran’s threat, imminent or potential, was a key factor behind the gradual crumbling of the American-Israeli coordinated military and intelligence efforts, to bring down the regime in Tehran.


Israel under Benjamin Netanyahu’s extreme right-wing government, kept saying Iran posed an imminent existential threat to Israel, and therefore it must be brought down by force. While the US position was constrained by its previous international commitments on the issue of Iran’s nuclear ambitions, as stipulated in the 2015 Joint Comprehensive Plan of Action (JCPOA), signed between Iran and the P5+1 powers, during the administration of President Obama.


Since that moment Netanyahu kept vigorously urging, more likely lecturing the US and the West, on the dangers of the JCOPA agreement. When Donald Trump was elected President in 2017, things took an important and completely different turn. In the following year, he took the United States out of that internationally-backed deal as he had promised to do during his election campaign. He also kept his promises of moving the US Embassy to Occupied Jerusalem and recognize the occupied Syrian Golan Heights as part of Israel.


These symbolic and important gestures, whetted Netanyahu’s appetite for more American concessions to Israeli demands.


Netanyahu’s golden opportunity came when Trump was re-elected to his second term in 2023, the same year when Hamas launched its massive assault on the Israeli settlements in the so-called “Gaza enevlope”. Other militias connected and supported by Iran, including the Houthis in north Yemen, Hezbollah in south Lebanon, Syria under the previous regime and Shia factions in Iraq coordinated their efforts to stand by Hamas during that long and unprecedented confrontation with Israel.

For its part, Iran did not shy from making it clear that it helped create this “chain” of resistance factions to encircle Israel from three directions.

The second turning magical point in the US position on the issue of direct military intervention against Iran came about when Israel succeeded in serving Hezbollah, the severest military blow ever, in the pagers’ operation and the subsequent assassination of Hezbollah’s top leaders, including its charismatic Secretary-General Hassan Nasrallah on Sept 27, 2024.


Trump was very impressed with all of that Israeli action and Netanyahu gave himself the full credit for this unexpected success.


Accordingly, Netanyahu’s plan to Trump was simple. Based on the Israeli accumulated intelligence and expertise on the Iranian internal scene and emulating its operation against Hezbollah leaders in Lebanon, accompanied by massive American air strikes would provide both allies with the best chance to finish the Ayatollahs in Tehran once and for all!


But as events unfolded, all of Netanyahu’s plans, personally and strongly endorsed by Trump and his military aides, suddenly started crumbling, one after the other. His relations with Trump slipped into stages of deterioration by the day and week as the closure of the Hormuz Strait by Iran, started hurting the world economy led by the US.


Here new red lights went on and the phone calls between the two men became more intense and vulgar. Then Trump decided to pass on the torch to his deputy, JD Vance, who seemed comfortable to tell Netanyahu what Trump avoided to do!


Conclusion: It is tricky to switch roles of allies in wars. A smaller entity can always stay safe as long as its leaders know the limits of their power and leverage. When people like Netanyahu think they have more power and clout than they actually have, versus their stronger ally, then irritation starts to brew, especially in the case of Trump who likes to show he is always in the driving seat. It also means that the leadership on the side of stronger partner has some problems of its own!


Whether it is a wrangle, rift, collision, divorce or worse between Trump and Netanyahu, we will not know for certain, until the negotiators in Switzerland close their files and head back home!

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Occupation and Israeli Violence

By Najla M. Shahwan

In the context of Israel’s unlawful occupation and its imposition of a system of apartheid against all Palestinians, and against the backdrop of its ongoing genocide in Gaza, Israeli authorities have been recently accelerating its violations of international human rights and humanitarian law in pursuing its policy of ethnic cleansing in the occupied West Bank.

This policy has been implemented through the forcible displacement of Palestinians in refugee camps, Bedouin and herding communities in the West Bank, as well as the creation and expansion of settlements , acts that amount to the war crime of unlawful deportation and transfer.

Palestine’s Permanent Mission to the UN on June 12 sounded the alarm over the newest largest wave of forced displacement of Palestinians in the occupied West Bank.

During a briefing held by the Palestine’s Permanent Mission to the UN in Geneva, Palestine’s Permanent Representative, ambassador Ibrahim Khraishi, warned of the unprecedented deterioration of conditions in the occupied West Bank amid the upsurge of colonist attacks, colonial settlement expansion, and the ongoing military offensive on the refugee camps of Jenin, Tulkarm and Nur Shams, which has triggered the largest wave of forced displacement in the West Bank since 1967, alongside widespread destruction of infrastructure, homes and civilian facilities.

He stressed that the West Bank was witnessing a dangerous escalation at the political, economic and humanitarian levels due to Israel’s unbridled annexation and settler-colonialism policies, arrests, extrajudicial killings, colonist violence, and the continued withholding of Palestinian clearance revenues.

On his part, UNRWA representatives outlined the latest developments in the northern West Bank, pointing to escalating destruction and the forced displacement of more than 45,000 Palestinians, attacks on infrastructure and medical facilities, and Israeli measures aimed at demolishing the Agency’s premises in occupied Jerusalem.

Israeli authorities have been accelerating annexation through a state-driven campaign of ethnic cleansing targeting Palestinian Bedouin and herding communities in Area C of the occupied West Bank, while committing the crime against humanity of forcible transfer.

The Israeli government has made formal annexation an explicit policy objective .

It has accelerated settlement expansion and land grabs, increased financial and logistical support to settlements, and has armed settlers, thereby enabling a brutal state-sanctioned campaign of settler violence and of forced displacement of Palestinians from Area C.

This area constitutes over 60 per cent of the occupied West Bank and has long been central to Israel’s efforts to control land and demographics, given its natural resources, vital grazing and agricultural land.

Communities in Area C have been facing growing risks of displacement and settlement expansion.

The Jordan Valley and South Hebron Hills have been areas under particular pressure where residents have faced repeated raids, demolitions and damage to infrastructure. Restrictions on access to land and essential services have also increased pressure on these communities and State -backed settler violence and home demolitions have forcibly displaced thousands of Palestinians in, emptying out over 100 villages entirely.

In the Gaza Strip , Israel’s ongoing military operations and evacuation orders despite the ceasefire have displaced roughly 90 per cent of the population (approximately 1.9 million people), with much of the civilian infrastructure destroyed to create long-term buffer zones.

Families have been displaced from their neighborhoods many times – and the last time they were uprooted, they were homeless for more than six months.

Israel’s ‘voluntary emigration’ plan from Gaza is its latest attempt to ethnically cleanse Palestinians from the Strip .

Israel’s defense minister has advanced plans to remove Palestinians from the Gaza Strip through “voluntary emigration”.

Israel Katz said late last May that the plans would take place “at the proper time and in the proper manner”.

Israel’s security cabinet approved a proposal by Katz in March to establish a directorate within his ministry to facilitate “migration” from the enclave.

Despite the Israeli genocide in Gaza, which has killed more than 73,000 Palestinians and wrought utter destruction on the coastal enclave, the vast majority of Palestinians there say they will never abandon their home.

Proposals for the removal of Palestinians from the Gaza Strip have been repeatedly raised during the course of the Israeli genocide.

Though some ministers have framed the move to remove Palestinians as a voluntary option, other Israeli officials have been explicitly calling for forced expulsion, which is a war crime.

Article 49 of the Fourth Geneva Convention prohibits an occupying power from forcibly transferring , deporting or displacing occupied people from an occupied territory while the Rome Statute of the International Criminal Court names deportation by “expulsion or other coercive acts” a crime against humanity.

Ninety-two per cent of Gaza’s homes have been destroyed or damaged. None of its 37 hospitals is fully functional. Aid trucks cut from 4,200 a week to 590 when Israel sealed the crossings in February, families burning trash to cook whatever arrives, children frozen to death last winter for lack of shelter materials Israel would not allow in.

The Yellow Line, the boundary of Israeli control drawn by the ceasefire, keeps moving west, swallowing water points and clinics, with Palestinians killed for approaching a line that approaches them. More than 986 Palestinians have been killed since the “ceasefire” was signed in October 2025.

Amid the expanding Israeli military incursions record levels of settler violence, and impending annexations , the overwhelming majority of the Palestinians in the West Bank and Gaza are fiercely resisting displacement , viewing it as a permanent severing from their homeland .

The writer is a Palestinian author, researcher and freelance journalist and contributed this article to the Jordan Times

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