Israeli Financial Firms Warn of Cutting Ties with Palestinian Banks, Threatening West Bank Trade

Two Israeli financial companies have acted as intermediaries for Palestinian banks. They process the transactions that enable most West Bank imports and exports. The firms have now signaled they may end these partnership arrangements. A break would disrupt the flow of goods across the Palestinian economy. Palestinian businesses rely on the services to move cash and settle trade. The threat comes amid heightened economic and political tensions. Officials warn the move could deepen the existing economic crisis in the territories. Observers suggest alternative channels would be needed if the cut occurs.