The Palestinian banking system’s heavy dependence on "Israel" has exposed it to growing financial risks, with two Israeli banks processing billions of shekels in transactions each year and controlling a key channel to the Israeli financial system.

Over the past two and a half years, the idea of reestablishing Israeli settlements in the Gaza Strip has followed a deliberate path, beginning with right-wing conferences and settlement movement proposals before culminating in a formal government initiative in June 2026.

In the lead-up to Slovenia’s parliamentary elections in March 2026, the center-left liberal Freedom Movement government was subjected to a broad Israeli cyber and media smear campaign that affected the election results, cost it its parliamentary majority.

Despite decades of alliance and deep dependency, “Israel” now faces a new and potentially destabilizing challenge: a shifting public mood in the United States, sharpened by the war on Gaza.

The decision to impose Israeli control over Area H2 of the 1997 Hebron Agreement, replacing the role of the Palestinian Authority, marks the latest step in a long series of moves to entrench Israeli Occupation rule over the West Bank.