Middle East Conflict News
LAST UPDATE: June 12, 2025
EU tells Israel to reverse move to cut off Palestinian banks
The EU urged Israel to revoke a far-right minister’s decision to end banking cooperation with Palestinian banks, warning that the move risks paralyzing their financial institutions and destabilizing the Palestinian Authority (barrons.com).
Insight
The EU’s intervention reflects mounting international pressure against decisions that threaten financial infrastructure in the occupied territories; failure to reverse could further isolate the PA and escalate regional tensions.
End of cooperation with Israeli banks may harm Palestinian economy, Palestinians say
The Palestinian Monetary Authority warned that ending the waiver that allows Israeli banks to process shekel transactions for Palestinian institutions could severely disrupt imports and payments worth 53 billion shekels in 2023. Approval by Israel’s security cabinet is still pending .
Insight
Cutting banking ties could trigger a supply-chain crisis for essentials like food, fuel, electricity, and water, intensifying economic hardship and political instability in Palestinian areas.
Egypt backs ‘pressure on Israel’ but says Gaza actions need approval
Egypt expressed support for international pressure on Israel to lift the Gaza blockade but emphasized that any foreign delegations must receive official approval to visit border regions .
Insight
Egypt’s position highlights its diplomatic balancing act—advocating for Palestinian relief while controlling access to border zones, signaling both humanitarian concern and concerns about regional stability.
US slams UN conference on Israel-Palestinian issue, warns of consequences
The U.S. government issued a diplomatic cable urging countries to avoid a UN conference on the two-state solution, warning that unilateral recognition of a Palestinian state could hinder peace talks and embolden Hamas .
Insight
The U.S. stance reflects concern that formal diplomatic moves may disrupt delicate ceasefire efforts and U.S.-led mediation, emphasizing its continued central role in Middle East diplomacy.
