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The article addresses the escalating tensions in the West Bank due to the deteriorating security and economic situation, along with the Israeli army's acknowledgment of the potential explosion resulting from increasing settler crimes and the weakening of the Palestinian Authority. It focuses on Finance Minister Bezalel Smotrich's use of the Palestinian banking file as a political leverage tool, having shortened the compensation lines that protect Israeli banks from lawsuits related to Palestinian accounts linked to terrorist entities. This move threatens the stability of the financial clearing system between Israel and the Palestinian Authority and risks the collapse of the Palestinian economy. According to sources, the Israeli government is delaying the banking crisis until 2026, despite warnings of the Palestinian Authority's collapse and its inability to maintain control, while Smotrich exploits the issue to achieve settlement gains. The report emphasizes that the current situation is disastrous, with the Authority relying on limited Israeli support, and warns that the escalating crisis could further intensify tensions in the region.
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