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Israel Extends Banking Relations with Palestinian Banks Until November 2025 Amid Biden Administration Pressure

Nov 28, 2024, 05:07 PM

The Israeli security cabinet has approved an extension for Israeli banks to maintain business relations with Palestinian banks in the occupied West Bank until November 2025. This decision comes in response to significant pressure from the Biden administration and several Western nations, including the UK, France, and Germany, which warned of a potential economic collapse of the Palestinian Authority if the approval was not renewed. The National Security Council expressed concerns that halting the approval could lead to serious negative consequences for Israel's security and foreign relations, as well as a detrimental impact on the Palestinian economy, increasing the risk of money laundering and terrorism financing. Israel had previously extended the approval by only one month to retain leverage over the Biden administration amid fears that the U.S. might advance a resolution regarding the Palestinian issue at the UN Security Council.