Norway's Wealth Fund Cuts Israeli Ties Amid Rising Tensions

Norway's $2 trillion sovereign wealth fund is ending contracts with asset managers handling its Israeli investments due to the situation in Gaza and the West Bank. Following an urgent review, the fund divested stakes in Israeli companies citing ethical concerns. Internal management will now oversee remaining investments.

Norway's $2 trillion sovereign wealth fund announced its decision to sever ties with asset managers handling its Israeli investments, amid the ongoing crisis in Gaza and the West Bank.

The decision follows an urgent review launched last week after reports emerged of the fund's stake in an Israeli jet engine group linked to the military. The fund will now manage these investments internally, having already divested from 11 Israeli companies.

Norway's central bank, steward of the fund, plans to enhance its due diligence and ensure future investments adhere to ethical standards. The parliament recently rejected a proposal for a complete divestment from Israeli companies involved in Palestinian territories.

(With inputs from agencies.)