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.”


Explosive drone intercepted near Irbil airport in northern Iraq, security statement says

Updated 7 sec ago
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Explosive drone intercepted near Irbil airport in northern Iraq, security statement says

The “Flight operations at the airport continued normally,” the Irbil airport authority said

IRBIL, Iraq: An explosive drone was shot down near Irbil airport in northern Iraq on Thursday, the Iraqi Kurdistan’s counter-terrorism service said in a statement.

There were no casualties reported, according to two security sources.

The “Flight operations at the airport continued normally and the airport was not affected by any damage,” the Irbil airport authority said in a statement.

The incident only caused a temporary delay in the landing of one aircraft, the statement added.

Jordanian and Vatican officials discuss promotion of Petra as destination for Christian pilgrims

Updated 27 min 8 sec ago
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Jordanian and Vatican officials discuss promotion of Petra as destination for Christian pilgrims

  • They say there is a strategic opportunity to integrate the UNESCO World Heritage Site into routes for Christian travelers
  • Head of tourism authority says highlighting Petra’s significance to Christian heritage itineraries could enhance Jordan’s position on global religious tourism map

LONDON: Officials from Jordan and the Vatican met on Thursday to discuss ways in which they can cooperate to advance religious tourism, including the promotion of the ancient city of Petra as a destination for Christian pilgrims.

Fares Braizat, who chairs the board of commissioners of the Petra Development and Tourism Regional Authority, said that highlighting the significance of the UNESCO World Heritage Site as part of Christian heritage itineraries could enhance Jordan’s position on the global religious tourism map.

The country has a number of important Christian sites, the most significant of which is the location on the eastern bank of the Jordan River where Jesus is said to have been baptized by John the Baptist. Several popes have visited it, including Francis and John Paul II.

Archbishop Giovanni Pietro Dal Toso, the Vatican’s ambassador to Jordan, confirmed the interest in collaborating with Jordanian authorities, and praised the nation’s stability and its rich historical and religious heritage.

Both officials acknowledged the strategic opportunity that exists to integrate Petra into pilgrimage routes for Christian travelers, the Jordan News Agency reported.

The Petra tourism authority recently lit up the Colosseum in Rome with the signature colors of the historic Jordanian site to celebrate a twinning agreement as part of a marketing strategy to attract European visitors, and to raise Petra’s profile globally as a premier cultural and spiritual tourism destination.

The Vatican itself is also a major tourism destination, for Christian pilgrims in particular. In 2025 it is expected to welcome between 30 and 35 million visitors during its latest Jubilee Year, a significant ecclesiastical event that takes place every 25 years.


Last lifelines in Gaza are being cut, UN chief warns

Updated 03 July 2025
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Last lifelines in Gaza are being cut, UN chief warns

  • Secretary-General Antonio Guterres again raises alarm over increasingly dire humanitarian crisis as restrictions on aid mount and civilians run out of safe places to shelter
  • He expresses grave concern over series of attacks in recent days that hit locations in which Palestinians were seeking shelter or trying to obtain food

NEW YORK CITY: UN Secretary-General Antonio Guterres on Thursday said he was “appalled” by the escalating humanitarian crisis in Gaza, condemned recent deadly strikes against displaced people, and warned that the enclave is on the brink of total collapse as fuel supplies run out.

He expressed grave concern over a series of attacks in recent days that hit locations in which Palestinians sought shelter or were trying to access food.

Guterres’ spokesperson, Stephane Dujarric, read a statement that said: “Multiple attacks (have) killed and injured scores of Palestinians. The secretary-general strongly condemns the loss of civilian life.”

Civilians in Gaza are running out of safe areas in which to shelter as Israeli evacuation orders continue to expand, Dujarric added as he warned of a dire humanitarian crisis amid mounting restrictions on the delivery of aid and rising casualties among relief workers.

Israeli authorities issued a new displacement order on Thursday targeting parts of Gaza City, citing as a reason rocket fire from Palestinian groups. It affected an estimated 40,000 people, including those living in a displacement site, a medical facility, and a neighborhood previously spared evacuation orders since a temporary ceasefire agreement between Israel and Hamas ended in March.

“As of earlier today, about 900 families are estimated to have fled,” Dujarric said, adding that approximately 78 percent of the Gaza Strip has now been affected by the cumulative effects of more than 50 such orders. When combined with the effects on areas designated as Israeli militarized zones, the figure rises to 85 percent, leaving just 15 percent of the territory available for civilians to live.

“Those areas are, of course, overcrowded,” Dujarric said. “They also severely lack basic services or proper infrastructure.”

He described the remaining habitable zones as fragmented and unsafe, and compared the humanitarian conditions there to having more than 2 million crammed into Manhattan but

“instead of buildings, the area is strewn with the rubble of demolished and burnt-out structures without any infrastructure or basic support.”

The UN Population Fund has reported that an estimated 700,000 women and girls in Gaza are experiencing “a nightmare” situation as a result of lack of access to menstrual hygiene products, water and privacy. It said it has nearly 170 truckloads of supplies ready for delivery but they remain blocked from entering Gaza.

Meanwhile, the UN’s Office for the Coordination of Humanitarian Affairs said that nine more aid workers from five organizations have died in Gaza since last Thursday, bringing the death toll among aid personnel to 107 in 2025, and 479 since the war began in October 2023; 326 members of UN staff are among the dead.

OCHA also highlighted the significant obstacles humanitarian operations faced in June. Out of nearly 400 attempts to coordinate with Israeli authorities, 44 percent were denied, and 10 percent were initially approved but later obstructed. Only a third of the missions were fully facilitated, while 12 percent were canceled due to logistical or security issues.

Four out of 16 humanitarian coordination efforts were denied on Thursday alone, Dujarric said, hindering efforts to relocate medical supplies and clear debris.

“The space left for civilians to stay is shrinking by the day,” he added.

In his statement, Guterres underscored the fact that international humanitarian law is “unambiguous” in its requirement for civilians to be protected and their basic needs met.

He warned that the continuing blockade on fuel deliveries, now entering an 18th week, threatens to bring remaining humanitarian operations to a halt.

“Without an urgent influx of fuel, incubators will shut down, ambulances will be unable to reach the injured and sick, and water cannot be purified,” he said, adding that the UN and its partners might soon be unable to deliver even the limited amount of aid that remains in Gaza.

Guterres repeated his call for “full, safe and sustained humanitarian access,” and said the UN has a ready, proven plan to deliver aid “safely and at scale” to civilians across the territory.

He also renewed his appeal for an “immediate, permanent ceasefire” and the “immediate and unconditional release of all hostages,” and stressed that all parties involved in the conflict must uphold their obligations under international law.


UAE president, king of Bahrain discuss ties in Abu Dhabi

Updated 03 July 2025
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UAE president, king of Bahrain discuss ties in Abu Dhabi

  • Several Emirati and Bahraini officials attended the meeting
  • Leaders explored ways to strengthen Abu Dhabi-Manama ties in support of shared interests

LONDON: UAE President Sheikh Mohamed bin Zayed Al-Nahyan visited King Hamad bin Isa Al-Khalifa of Bahrain at his residence in Abu Dhabi on Thursday to discuss relations between the two countries.

The two leaders discussed cooperation between Manama and Abu Dhabi, exploring ways to strengthen their ties in support of shared interests and aspirations for continued progress, development and prosperity, the Emirates News Agency reported.

Several UAE officials attended the meeting, including Sheikh Theyab bin Mohamed bin Zayed Al-Nahyan, deputy chairman of the Presidential Court for Development and Martyrs Families affairs, and Sheikh Hamdan bin Mohamed bin Zayed Al-Nahyan, deputy chairman of the Presidential Court for Special Affairs.

The Bahraini side included Lt. Gen. Sheikh Nasser bin Hamad Al-Khalifa, the national security adviser, Royal Guard commander and secretary general of the Supreme Defense Council of Bahrain, and Sheikh Khalid bin Hamad Al-Khalifa, the first deputy chairman of the Supreme Council for Youth and Sports and president of the General Sports Authority of Bahrain.


Wildfires kill two in western Turkiye, little-known group claims arson attacks

Updated 03 July 2025
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Wildfires kill two in western Turkiye, little-known group claims arson attacks

  • The latest casualty was a backhoe operator, Ibrahim Demir, who died while battling the flames in the Odemis district
  • A group calling itself “Children of Fire” claimed responsibility

ISTANBUL: A wildfire killed a second person in Türkiye’s western Izmir province on Tuesday as blazes raged for a seventh day across several regions, while a little-known group claiming ties to Kurdish militants said it was behind dozens of arson attacks.

The latest casualty was a backhoe operator, Ibrahim Demir, who died while battling the flames in the Odemis district, the state-run Anadolu news agency said.

Earlier, an 81-year-old bedridden man who was home alone in the same area died when fire reached his house, marking the first death since the fires began.

A group calling itself “Children of Fire” claimed responsibility for “tens of fires across six Turkish cities”, according to a statement shared online.

The group, which is little known, says it is affiliated with the outlawed Kurdistan Workers Party (PKK), designated a terrorist group by Türkiye, the United States and European Union. The PKK, which said in May that it was ending a 40-year insurgency and disbanding, has not commented on the claim.

Firefighters continued to battle flames with helicopters and planes dropping water over mountainous terrain in Izmir, while authorities closed some roads to the Aegean resort town of Cesme, Anadolu said.

Broadcasters showed footage of flames lining the main highway as water tankers arrived.

Türkiye, Greece and other countries in the Mediterranean are in an area scientists dub “a wildfire hotspot” — with blazes common during hot and dry summers. These have become more destructive in recent years due to a fast-changing climate.

Wildfires across Türkiye’s west have damaged around 200 homes and victims have been provided alternative accommodation, Interior Minister Ali Yerlikaya said. Some 50,000 people were temporarily evacuated earlier this week from areas of fires fueled by high temperatures, low humidity and strong winds.

New fires also broke out on Thursday in the southern resort province of Antalya and in forested areas near Istanbul, Türkiye’s largest city, Anadolu said. Authorities have managed to contain several of the blazes.