Middle East Conflict News
LAST UPDATE: June 11, 2025
Israel cancels waiver allowing Israeli and Palestinian banks to work together
Israeli Finance Minister Bezalel Smotrich canceled a waiver that had allowed Israeli banks to process shekel payments for the Palestinian Authority, exposing Palestinian banks to legal liabilities and risking economic isolation.
Insight
The decision effectively cuts off Palestinian banks from the Israeli financial system, increasing pressure on an already fragile Palestinian economy. It appears to be a retaliatory diplomatic measure against the Palestinian Authority’s international advocacy. Financial exclusion risks reducing remittances and stalling salaries, which could further destabilize daily life in the West Bank and Gaza. The move might also signal a new front in financial coercion amid the broader Gaza conflict.
UK, Australia, Canada, N.Zealand, Norway sanction far-right Israeli ministers
Five Western nations imposed travel bans and asset freezes on Israeli far-right ministers Itamar Ben‑Gvir and Bezalel Smotrich, citing their role in inciting violence in the West Bank.
Insight
This coordinated action is a historically unusual move by close allies, marking the first time these countries targeted serving Israeli ministers. The sanctions reflect growing international condemnation of extremist rhetoric from Netanyahu’s government. Although Israel and the U.S. strongly denounced the move as undermining ceasefire efforts, the sanctions may embolden moderate domestic voices and add diplomatic strain to Israel’s coalition politics.
US slams sanctions by UK, allies on far-right Israeli ministers
The U.S. State Department criticized the sanctions on Israeli ministers Ben‑Gvir and Smotrich by their Western allies, calling the measures “unhelpful” to ceasefire efforts in Gaza.
Insight
This represents a rare public divergence between the U.S. and its allies. Washington views the sanctions as potentially counterproductive to diplomatic efforts and hostage negotiations, highlighting its strategic support for Israel’s current leadership. The criticism underscores underlying tensions in Western consensus over how to respond to Israeli government policies in the occupied territories.
