US warns of severe impact if Israel cuts ties with Palestinian banks

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US warns of severe impact if Israel cuts ties with Palestinian banks
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US Treasury Secretary Yellen expresses concerns about Israel's threat to cut off Palestinian banks from Israeli financial channels, warning it could cause significant economic instability and a humanitarian crisis.

US Treasury Secretary Yellen expresses concerns about Israel's threat to cut off Palestinian banks from Israeli financial channels, warning it could cause significant economic instability and a humanitarian crisis.Israel cutting off Palestinian banks could cause economic instability. / Photo: AFP Archive

"I'm particularly concerned by Israel's threats to take action that would lead to Palestinian banks being cut off from their Israeli correspondent banks," she told reporters in Stresa in northern Italy on Thursday, where a meeting of G7 finance ministers opens later. Asked what the United States and G7 might do in response, Yellen said she had written to Israeli Prime Minister Benjamin Netanyahu months ago about the economic situation in the occupied West Bank.

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