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Smotrich’s move to cut bank ties risks Palestinian supply crisis

A Palestinian man cleans his shop a day after a large-scale Israeli military raid in the old town of Nablus city in the occupied West Bank on June 11, 2025. (AFP)
A Palestinian man cleans his shop a day after a large-scale Israeli military raid in the old town of Nablus city in the occupied West Bank on June 11, 2025. (AFP)
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Updated 6 min 18 sec ago

Smotrich’s move to cut bank ties risks Palestinian supply crisis

Smotrich’s move to cut bank ties risks Palestinian supply crisis
  • The waiver had allowed Israeli banks to process shekel payments for services and salaries tied to the Palestinian Authority, without the risk of being charged with money laundering and funding extremism

JERUSALEM: An Israeli move to cut off cooperation with Palestinian banks could halt the supply of essential goods such as food and fuel to the Palestinian territories, the Palestinian Monetary Authority said on Wednesday.
Israeli Finance Minister Bezalel Smotrich ordered the cancelation of a waiver on cooperation between Israeli and Palestinian banks on Tuesday.
This move risks the Palestinian banking system, trade, and overall economy. Israeli banks Hapoalim and Israel Discount Bank work with Palestinian banks.
Some 53 billion shekels ($15.2 billion) were exchanged at Palestinian banks in 2023, official data show.

BACKGROUND

Israeli Finance Minister Bezalel Smotrich ordered the cancelation of a waiver on cooperation between Israeli and Palestinian banks on Tuesday.

Canceling the waiver would require approval by Israel’s security Cabinet. No date for a vote has been set, and it was not clear whether it would pass.
The PMA said it was following developments and warned that such disruption posed a serious threat to Palestinian access to basic goods and services.
It noted it has ongoing coordination with the political leadership and international community to safeguard correspondent banking relationships.
“These efforts are vital to ensuring the continuity of commercial transactions and the payment of essential imports and services, including food, electricity, water, and fuel,” the PMA said.
Smotrich said his decision came against the “delegitimization campaign” by the Palestinian Authority against Israel globally.
The waiver had allowed Israeli banks to process shekel payments for services and salaries tied to the Palestinian Authority, without the risk of being charged with money laundering and funding extremism.
Without it, Palestinian banks would be cut off from the Israeli financial system.
The PMA said depositors’ funds within the Palestinian banking sector are secure and that the banking system remains integrated with the global financial network through a broad range of correspondent banks and continues to provide services to individuals and businesses domestically and internationally.

Smotrich, under US pressure, had in late 2024 signed a waiver to extend cooperation between Israeli and Palestinian banks through November 2025.
In the past, Smotrich sought to end the waiver but ultimately signed it due to pressure from the US and Prime Minister Benjamin Netanyahu.
His latest decision came hours after the UK and four other nations imposed sanctions on him and another far-right minister, accusing them of inciting violence in the West Bank.
The sanctions included a freeze on assets and travel bans.
Israel’s Foreign Minister Gideon Saar said the action by the five countries was “outrageous.”


Egypt backs ‘pressure on Israel’ but says Gaza actions need approval

Egypt backs ‘pressure on Israel’ but says Gaza actions need approval
Updated 36 min 22 sec ago

Egypt backs ‘pressure on Israel’ but says Gaza actions need approval

Egypt backs ‘pressure on Israel’ but says Gaza actions need approval
  • Foreign ministry says foreign delegations seeking to visit border area with Gaza must receive prior official approval

CAIRO: Egypt said on Wednesday that it backs efforts to put “pressure on Israel” to lift its blockade on Gaza, but added that any foreign delegations seeking to visit the border area must receive prior approval through official channels.
Egypt “asserts the importance of putting pressure on Israel to end the blockade on the (Gaza) Strip,” the foreign ministry said as hundreds of activists in a Gaza-bound convoy head to the Egyptian border on their way to the besieged Palestinian territory, but added “we will not consider any requests or respond to any invitations submitted outside the framework defined by the regulatory guidelines and the mechanisms followed in this regard.”


Israeli strike kills one in Lebanon’s south

Israeli strike kills one in Lebanon’s south
Updated 51 min 59 sec ago

Israeli strike kills one in Lebanon’s south

Israeli strike kills one in Lebanon’s south
  • Health ministry says Israeli drone strike hit the town of Beit Lif

BEIRUT: One person was killed on Wednesday in an Israeli strike on a village in southern Lebanon, the health ministry reported, the latest deadly attack despite a November ceasefire.
“The raid carried out by an enemy Israeli drone on the town of Beit Lif, in the Bint Jbeil district, resulted in one martyr and three people injured,” read a statement from the ministry.
The official National News Agency said the strike targeted a house’s courtyard in the town, adding that a missile hit the homeowner’s car.
Israel has regularly bombed its northern neighbor since the November ceasefire that sought to end more than a year of hostilities with militant group Hezbollah including two months of full-blown war.
The agreement required Hezbollah fighters to withdraw north of the Litani river, about 30 kilometers (20 miles) from the Israeli border, and dismantle all military infrastructure to its south.
It also required Israel to withdraw all of its troops from Lebanon, but it has kept them in five positions it deems “strategic.”


US prepares to order departure of Baghdad embassy staff

US prepares to order departure of Baghdad embassy staff
Updated 11 June 2025

US prepares to order departure of Baghdad embassy staff

US prepares to order departure of Baghdad embassy staff
  • State Department prepares to order departure of all nonessential personnel from US Embassy in Baghdad, officials tell AP

WASHINGTON: The State Department is preparing to order the departure of all nonessential personnel from the US Embassy in Baghdad due to the potential for regional unrest, two US officials said Wednesday.
The Baghdad embassy has already been on limited staffing, and the order will not affect a large number of personnel, but the department also is authorizing the departure of nonessential personnel and family members from Bahrain and Kuwait.
That gives them an option on whether to leave the country.
The Pentagon is standing by to support a potential evacuation of US personnel from US Embassy Baghdad, another US official said.
The officials spoke on condition of anonymity to detail plans that have not been made public.


Former Lebanese economy minister arrested on corruption charges

Former Lebanese economy minister arrested on corruption charges
Updated 11 June 2025

Former Lebanese economy minister arrested on corruption charges

Former Lebanese economy minister arrested on corruption charges
  • Former Economy Minister Amin Salam was detained after three-hour interrogation

BEIRUT: A former Lebanese Cabinet minister has been arrested and charged after an investigation into alleged financial crimes, judicial and security officials told The Associated Press.
Former Economy Minister Amin Salam was detained after a three-hour interrogation about illegal use of ministry funds and use of suspicious contracts. The three judicial officials and one security official spoke on condition of anonymity because they were not authorized to speak to the press.
Lebanon has been trying to reform its battered economy, which for decades has been rife with profiteering.
Salam has been charged with forgery, embezzlement, and misuse of public funds. Local media said it was related to alleged extortion of private insurance companies and using funds from a committee that supervises those companies for his own expenses.
Salam did not directly comment. On Monday, however, he shared a video on social media that denied the reports and asserted that his use of those funds was to increase the committee’s efficacy and transparency.
Salam was economy minister for over three years. He was appointed in 2021 at a time when Lebanon’s economy had plummeted and the country was plagued by severe power outages, fuel shortages and stark food inflation.


Israel urges Egypt to block Gaza-bound activist convoy

Israel urges Egypt to block Gaza-bound activist convoy
Updated 4 min 47 sec ago

Israel urges Egypt to block Gaza-bound activist convoy

Israel urges Egypt to block Gaza-bound activist convoy
  • The Soumoud convoy left Tunis in buses and cars on Monday, hoping to pass through divided Libya and Egypt to reach Gaza

JERUSALEM: Israel’s defense minister on Wednesday called on Egypt to block two pro-Palestinian activist convoys planning to head to Egypt’s Rafah border crossing with Gaza.
“I expect the Egyptian authorities to prevent the arrival of jihadist protesters at the Egypt-Israel border and not to allow them to carry out provocations or attempt to enter Gaza,” Israel Katz said in a statement.
Katz added that such actions “would endanger the safety of (Israeli) soldiers and will not be allowed.”
His comments came as hundreds of pro-Palestinian activists on a Gaza-bound convoy arrived in the Libyan capital, driving eastward with the stated aim of breaking Israel’s blockade of the Palestinian territory.
The Soumoud convoy — meaning steadfastness in Arabic — left Tunis in buses and cars on Monday, hoping to pass through divided Libya and Egypt, which organizers say has yet to provide passage permits, to reach Gaza.
Egypt said on Wednesday that it backs efforts to put “pressure on Israel” to lift its blockade on Gaza, but added that any foreign delegations seeking to visit the border area must receive prior approval through official channels.
Egypt “asserts the importance of putting pressure on Israel to end the blockade on the (Gaza) Strip,” the foreign ministry said in a statement.
It added that Egypt “will not consider any requests or respond to any invitations submitted outside the framework defined by the regulatory guidelines and the mechanisms followed in this regard.”
After 20 months of war, Israel is facing mounting international pressure to allow more aid into Gaza to alleviate widespread shortages of food and basic supplies.
The United Nations has said the Palestinian territory was “the hungriest place on Earth.”
Another activist group, the Global March to Gaza, which is coordinating with Soumoud, said it is organizing a separate mobilization starting in Cairo on Friday.
Organizers told AFP on Wednesday that around 4,000 participants are expected to join the march, adding they are not planning to enter Gaza.
According to the plan, activists would travel by bus to the city of Arish in northern Sinai before walking on foot for 50 kilometers (30 miles) to the Gaza border.
Participants would then camp near the Egyptian side of the Rafah border crossing for a few days and return to Cairo on June 19.
Catherine Le Scolan-Quere, spokesperson for the group’s French delegation, said that several French nationals who arrived in Egypt to take part in the event were detained in their hotels or upon arrival at Cairo airport.
“It was the Israelis who ordered the Egyptians to prevent this march from taking place in the Sinai,” she said.
Carolie Laghouati, a 39-year-old French nurse, said her friend along with nine others were detained by the Egyptian police at Cairo airport.
“We’re locked up here, they tell us not to leave, they don’t tell us what’s going on, our passports are confiscated,” said her friend in a video sent to AFP.