Washington, D.C. – The United States has issued a warning to Israel regarding the potential for economic collapse in the occupied West Bank, as tensions rise following a call from an Israeli minister to annex a significant portion of the territory. The warning comes amid increasing concerns about the stability of the Palestinian economy and its potential impact on regional security.
US Ambassador to Israel Mike Huckabee emphasized the potential ramifications of a complete economic breakdown in the West Bank. Speaking to Axios, Huckabee stated, “If the Palestinian economy were to completely collapse, it won’t be a winning deal for anyone. Desperate people do desperate things.” His statement underscores the US government’s concern that economic instability could lead to increased unrest and instability in the region.
The US warning coincides with calls from within the Israeli government for annexation of the West Bank. Finance Minister Bezalel Smotrich urged Prime Minister Benjamin Netanyahu to adopt a plan that would annex most of the occupied territory. Smotrich argued that such a move would prevent the establishment of what he termed “a terrorist state in the heart of the country.”
Smotrich also claimed that there was “broad consensus” within Israel for his annexation plan, which was presented alongside a prominent settler leader in Jerusalem. The proposal involves Israel taking control of the majority of the region, excluding six disconnected Palestinian urban areas. The Palestinian Foreign Ministry has condemned the plan, calling it a “provocative call” that undermines the prospects of a two-state solution.
Furthermore, Smotrich has supported measures that restrict Palestinian movement and economic activity, including a ban on Palestinians from the West Bank crossing into Israel for work. These restrictions, combined with a network of checkpoints and settler violence, have significantly hindered the ability of Palestinians to move freely and conduct business.
Ambassador Huckabee has been engaged in negotiations with both Israeli and Palestinian officials in an effort to address the economic challenges in the West Bank. He has been in discussions with Finance Minister Smotrich and Palestinian Vice President Hussein Al Sheikh regarding the release of tax revenue owed to the Palestinian Authority.
The US warning and ongoing diplomatic efforts occur against a backdrop of increasing international pressure on Israel to address the Palestinian issue. Several countries, including Belgium, the United Kingdom, France, and Canada, have recently announced their intention to recognize a Palestinian state at the upcoming UN General Assembly, a move that has drawn criticism from Israeli officials.
In response to the growing international recognition of Palestine, some Israeli officials have reportedly considered annexing parts of the West Bank. Additionally, the approval of construction for the E1 settlement, a new illegal settlement near Jerusalem, has further undermined the prospects of a viable Palestinian state, as it would divide the West Bank and separate it from East Jerusalem.
The international community largely views the two-state solution as the preferred path to resolving the Israeli-Palestinian conflict. The potential for annexation and the ongoing economic challenges in the West Bank raise concerns about the future of this approach and the prospects for a lasting peace.
