Israel’s ‘economic war’ chokes occupied West Bank

Palestinian livelihoods have been hurt by bans on laborers crossing into Israel and by a sharp downturn in tourism in the territory, including a quiet Christmas season in Bethlehem. (AFP)
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Updated 16 June 2024
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Israel’s ‘economic war’ chokes occupied West Bank

  • Banking in the Palestinian territories is challenging, with the Palestinian Authority under scrutiny for potential terror financing
  • Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority

RAMALLAH, Palestinian Territories: Palestinian teenagers bounced on trampolines and jumped through hoops inside a towering tent on the outskirts of Ramallah, the financial hub of the occupied West Bank.
But the circus students weren’t the only ones bending over backwards in the pavilion: the school’s director faced financial hurdles to buy the tent from Europe and trampolines from Asia.
“We are suffering with international payments,” said Mohamad Rabah, head of the Palestinian Circus School, describing a bureaucratic process that could delay equipment delivery by up to a month.
Banking in the Palestinian territories is challenging, with the Palestinian Authority (PA) under scrutiny for potential terror financing, hindering transactions.
Israel has occupied the West Bank since 1967, with strong economic ties allowing two Israeli lenders to serve as correspondent banks in the Palestinian territory.
But this may change if Israel’s far-right Finance Minister Bezalel Smotrich carries out threats to sever a vital banking route next month.
Since Hamas’s October 7 attack triggered the Gaza war, Israel has imposed economic curbs on the PA, withholding tax revenues it collects on its behalf.
Smotrich said this week he had redirected $35 million in PA tax revenues to families of “terrorism” victims, a move condemned by the United States.
After three European countries recognized Palestinian statehood in May, Smotrich told Prime Minister Benjamin Netanyahu he would not extend indemnity to banks that transfer the funds from the end of June.
Israel’s Bank Hapoalim and Israel Discount Bank need protection, expiring on July 1, to avoid sanctions for dealing with Palestinian lenders.
Israel’s central bank and finance ministry declined to comment when contacted by AFP.
The banking channel used to pay for West Bank imports — including essential goods like water, fuel and food — handles $8 billion yearly.
Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority.
“For us, because our economy is dependent on the Israeli economy, because Israel is controlling the border, the impact will be high,” said PMA governor Feras Milhem.
The Palestinian economy is largely governed by the 1994 Paris Protocol, which granted sole control over the territories’ borders to Israel, including the right to collect import duties and value-added tax for the PA.
Palestinian livelihoods have also been hurt by bans on laborers crossing into Israel and by a sharp downturn in tourism in the territory, including a quiet Christmas season in Bethlehem.
The United States has urged Israel to improve conditions, warning that severing the banking route would have a dire impact on the West Bank economy.
“I believe it would create a humanitarian crisis in due course if Palestinian banks are cut off from Israeli correspondence,” US Treasury Secretary Janet Yellen said last month.
Western governments fear Israel’s economic policies could destabilize the West Bank.
“The banking system may collapse and therefore the PA may collapse as well,” a European diplomatic source in Jerusalem said on condition of anonymity.
“The PA is in a financial crisis and it could collapse before August.”
Palestinian businessmen say their bottom lines have been hit since October 7.
Imad Rabah, who owns a plastics company, said his net income had fallen 50 percent in one year.
Arak producer Nakhleh Jubran said his liquor business had fallen 30 percent over the same period.
“We have a traditional war in Gaza and we have an economic war in the West Bank,” said Jubran.
Musa Shamieh, who owns a womenswear company said the Israeli policies were designed to push Palestinians to leave the West Bank.
“They want us to leave our land and they know it will be hard for us to stay if we can’t do business,” Shamieh said.
Israel’s harsh economic policies could eventually drive Palestinian policymakers to pursue sweeping changes to the monetary system.
“We need to work on a plan B when it comes to the trade relations,” said Milhem, governor of the PMA, which uses an image of the former Palestinian pound as its logo.
Yousef Daoud, professor at the West Bank’s Birzeit University, said the territory could scrap the shekel as its de facto currency in favor of a digital alternative.
“We can make our e-currency, just collect all the shekels, issue an equivalent amount of Palestinian pounds, one-to-one fixed exchange rate, and have the Palestinians deal with e-currency,” he said.
“Somehow, eventually, we’ll get rid of the shekel.”


Israeli strikes batter Lebanon, killing five medics

Updated 57 min 10 sec ago
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Israeli strikes batter Lebanon, killing five medics

  • Israel has pushed on with its intense military campaign against Hezbollah, tempering hopes that efforts by a US envoy could lead to an imminent ceasefire
  • Hezbollah said it had fired rockets at Israeli troops east of Khiyam at least four times on Friday

BEIRUT: Israeli strikes battered southern Lebanon and the outskirts of the capital Beirut on Friday, killing at least five medics, as ground troops clashed with Hezbollah fighters in the south.
Israel has pushed on with its intense military campaign against the Iran-backed armed group Hezbollah, tempering hopes that efforts by a US envoy could lead to an imminent ceasefire.
US mediator Amos Hochstein said earlier this week in Beirut that a truce was “within our grasp.” He traveled on to meet Israeli Prime Minister Benjamin Netanyahu and Defense Minister Israel Katz before returning to Washington, according to the news outlet Axios.
His trip aimed to end more than a year of hostilities between Israel and Hezbollah along Lebanon’s southern border, which escalated dramatically when Israel ramped up its strikes in late September and sent ground troops into Lebanon on Oct. 1.
Israeli troops have fought Hezbollah in a strip of towns all along the border and this week pushed deeper to the edges of Khiyam, a town some six km (four miles) from the border. Hezbollah said it had fired rockets at Israeli troops east of Khiyam at least four times on Friday.
Lebanese security sources told Reuters that Israeli troops had also advanced in a string of villages to the west as well. They said Israel was most likely trying to isolate Khiyam ahead of a major attack on the town.
Israeli strikes on two other villages in southern Lebanon killed a total of five medics from a rescue force affiliated with Hezbollah, the Lebanese health ministry said.
The more than 3,500 people killed by Israeli strikes over the last year include more than 200 medics, the health ministry said.
Israel says its aim is to secure the return home of tens of thousands of people evacuated from Israel’s north due to rocket attacks by Hezbollah, which began firing across the border in support of Hamas at the start of the Gaza war in October 2023.
Israel also mounted more strikes on Beirut’s southern suburbs, a once densely populated stronghold of Hezbollah.
It issued evacuation orders on the social media platform X for several buildings in the area on Friday. Reuters footage showed one of the strikes appearing to pierce the center of a multi-story building, sending the whole structure toppling in a massive cloud of smoke.


UN reports heavy clashes between Israeli troops and Hezbollah in south Lebanon

Updated 22 November 2024
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UN reports heavy clashes between Israeli troops and Hezbollah in south Lebanon

  • “We are aware of heavy shelling in the vicinity of our bases,” UNIFIL spokesman Andrea Tenenti said
  • Asked if the peacekeepers and staff at the headquarters are safe, Tenenti said: “Yes for the moment”

BEIRUT: Israeli troops fought fierce battles with Hezbollah fighters on Friday in different areas in south Lebanon, including a coastal town that is home to the headquarters of UN peacekeepers.
A spokesman for the UN peacekeeping force known as UNIFIL told The Associated Press that they are monitoring “heavy clashes” in the coastal town of Naqoura and the village of Chamaa to the northeast.
UNIFIL’s headquarters are located in Naqoura in Lebanon’s southern edge close to the border with Israel.
“We are aware of heavy shelling in the vicinity of our bases,” UNIFIL spokesman Andrea Tenenti said. Asked if the peacekeepers and staff at the headquarters are safe, Tenenti said: “Yes for the moment.”
Several UNIFIL posts have been hit since Israel began its ground invasion of Lebanon on Oct. 1, leaving a number of peacekeepers wounded.
The fighting came a day after the International Criminal Court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu, his former defense minister and a Hamas military leader, accusing them of war crimes and crimes against humanity over their 13-month war in Gaza and the October 2023 attack on Israel respectively.
The warrant marked the first time that a sitting leader of a major Western ally has been accused of war crimes and crimes against humanity by a global court of justice.
Israel’s war has caused heavy destruction across Gaza, decimated parts of the territory and driven almost the entire population of 2.3 million people from their homes, leaving most dependent on aid to survive.
Israel launched its war in Gaza after Hamas-led militants stormed into southern Israel on Oct. 7, 2023, killing some 1,200 people, mostly civilians, and abducting another 250. Around 100 hostages are still inside Gaza, at least a third of whom are believed to be dead.
Israel has also launched airstrikes against Lebanon after the Hezbollah militant group began firing rockets, drones and missiles into Israel the day after Hamas’ attack last October. A full-blown war erupted in September after nearly a year of lower-level conflict.


Gaza ministry: hospitals to cut or stop services ‘within 48 hours’ over fuel shortages

Updated 22 November 2024
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Gaza ministry: hospitals to cut or stop services ‘within 48 hours’ over fuel shortages

  • All hospitals in Gaza would have to stop or reduce services “within 48 hours“

GAZA: The Hamas government’s health ministry warned Friday all hospitals in Gaza would have to stop or reduce services “within 48 hours” for lack of fuel, blaming Israel for blocking its entry.
“We raise an urgent warning as all hospitals in Gaza Strip will stop working or reduce their services within 48 hours due to the occupation’s (Israel’s) obstruction of fuel entry,” Marwan Al-Hams, director of Gaza’s field hospitals, said during a press conference.


Israel says to end ‘administrative detention’ for West Bank settlers

Updated 22 November 2024
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Israel says to end ‘administrative detention’ for West Bank settlers

  • Practice allows for detainees to be held for long periods without being charged or appear in court
  • The Palestinian Prisoners Club advocacy group said in August that 3,432 Palestinians were held in administrative detention

JERUSALEM: Israeli authorities will stop holding Jewish settlers in the occupied West Bank under administrative detention, or incarceration without trial, the defense ministry announced Friday.
The practice allows for detainees to be held for long periods without being charged or appear in court, and is often used against Palestinians who Israel deems security threats.
Defense Minister Israel Katz said it was “inappropriate” for Israel to employ administrative detention against settlers who “face severe Palestinian terror threats and unjustified international sanctions.”
But, according to settlement watchdog Peace Now, it is one of only few effective tools that Israeli authorities to prevent settler attacks against Palestinians, which have surged in the West Bank over the past year.
Katz said in a statement issued by his office that prosecution or “other preventive measures” would be used to deal with criminal acts in the West Bank.
B’Tselem, an Israeli rights group, said authorities use administrative detention “extensively and routinely” to hold thousands of Palestinians for lengthy periods of time.
The Palestinian Prisoners Club advocacy group said in August that 3,432 Palestinians were held in administrative detention.
Israeli daily Haaretz reported on Friday that eight settlers were held under the same practice in November.
Yonatan Mizrahi, director of settlement watch for Peace Now, said that although administrative detention was mostly used in the West Bank to detain Palestinians, it was one of the few effective tools for temporarily removing the threat of settler violence through detention.
“The cancelation of administrative detention orders for settlers alone is a cynical... move that whitewashes and normalizes escalating Jewish terrorism under the cover of war,” the group said in a statement, referring to a spike in settler attacks throughout the Israel-Hamas conflict over the past 13 months.
Western governments, including Israel’s ally and military backer the United States, have recently imposed sanctions on Israeli settlers and settler organizations over ties to violence against Palestinians.
On Monday, US authorities announced sanctions against Amana, a movement that backs settlement development, and others who have “ties to violent actors in the West Bank.”
“Amana is a key part of the Israeli extremist settlement movement and maintains ties to various persons previously sanctioned by the US government and its partners for perpetrating violence in the West Bank,” the US Treasury said.
Excluding Israeli-annexed east Jerusalem, the West Bank — which Israel has occupied since 1967 — is home to three million Palestinians as well as about 490,000 Israelis living in settlements that are illegal under international law.


UK would arrest Netanyahu over ICC warrant: Senior politician 

Updated 22 November 2024
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UK would arrest Netanyahu over ICC warrant: Senior politician 

  • Emily Thornberry: Britain has ‘obligation under Rome Convention’ to arrest Israeli PM if he enters country 
  • Court: ‘Reasonable grounds to believe’ Netanyahu responsible for war crimes, crimes against humanity in Gaza

LONDON: The UK will arrest Israeli Prime Minister Benjamin Netanyahu if he enters the country, a senior British politician has said.

The International Criminal Court issued an arrest warrant for Netanyahu on Thursday for alleged war crimes and crimes against humanity, alongside his former Defense Minister Yoav Gallant, pertaining to the Gaza war.

Emily Thornberry — Labour chair of the foreign affairs committee, and former shadow foreign secretary and shadow attorney general — told Sky News: “If Netanyahu comes to Britain, our obligation under the Rome Convention would be to arrest him under the warrant from the ICC.

“(It is) not really a question of should — we are required to, because we are members of the ICC.”

UK Home Secretary Yvette Cooper has refused to be drawn on whether Netanyahu would be arrested if he set foot on British soil, saying it “wouldn’t be appropriate for me to comment.”

She told Sky: “We’ve always respected the importance of international law, but in the majority of the cases that they pursue, they don’t become part of the British legal process.

“What I can say is that obviously, the UK government’s position remains that we believe the focus should be on getting a ceasefire in Gaza.”

Netanyahu’s arrest warrant is the first to be issued against the premier of a major Western ally by an international court for alleged war crimes and crimes against humanity.

His office denounced the warrant as “anti-Semitic,” adding that Israel “rejects with disgust the absurd and false actions.” Israel is not an ICC member and rejects the court’s jurisdiction.

US President Joe Biden called the warrants against Netanyahu and Gallant “outrageous,” adding: “Whatever the ICC might imply, there is no equivalence — none — between Israel and Hamas.”

Hungarian Prime Minister Viktor Orban said he plans to invite Netanyahu to visit Budapest, adding that the arrest warrant will “not be observed” by his government.

The Italian and French governments, however, have indicated that Netanyahu will be arrested if he visits either country.

The ICC said on Thursday it has “reasonable grounds to believe” that Netanyahu and Gallant “bear criminal responsibility” for “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts.”

The court also issued a warrant for Hamas commander Mohammed Diab Ibrahim Al-Masri for alleged war crimes and crimes against humanity.

Israel says Al-Masri, believed to have been the mastermind behind the Hamas attack of Oct. 7, 2023, was killed in Gaza earlier this year.

The ICC said it issued the warrant for his arrest because of insufficient evidence to prove his death.