Arab Press

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Tuesday, Aug 25, 2026

Israeli Military Concerns Over West Bank Financial Cutoff

Israeli Military Concerns Over West Bank Financial Cutoff

The Israeli military has warned the government that its financial cutoff to the Palestinian Authority could lead to a third intifada in the occupied West Bank. Approximately six billion shekels, or one point six one billion dollars, have been withheld in tax revenues from the Palestinian Authority since October. This has worsened economic conditions and raised fears of further violence amid the ongoing Gaza war.
The Israeli military has cautioned the government that cutting funds to the Palestinian Authority could incite a third intifada in the occupied West Bank, according to public broadcaster Kan Radio.

Amid the ongoing Gaza war, the West Bank's economy is teetering, with widespread job losses and unpaid public servants.

Israel has withheld around six billion shekels (one point six one billion dollars) in tax revenues from the Palestinian Authority since a Hamas attack in October, aggravating economic distress.

The military's memorandum highlights the risk of escalating violence and suggests easing restrictions, including reopening crossing points.

An Israeli official confirmed the memo's circulation, while Finance Minister Bezalel Smotrich stands firm on withholding funds, accusing the Palestinian Authority of supporting Hamas.

The situation continues to strain both Israeli-Palestinian relations and economic stability in the West Bank.
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