In West Bank, Israeli Army Operation Batters War-Depleted Economy

Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)
Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)
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In West Bank, Israeli Army Operation Batters War-Depleted Economy

Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)
Israeli army vehicles drive along a damaged road near the main entrance to Jenin refugee camp during an ongoing Israeli military operation in the West Bank city of Jenin, 05 February 2025. (EPA)

When a ceasefire began in Gaza last month, Palestinian activist Ahmad Kilani hoped the pause in fighting would also bring a return to peace in his hometown of Yabad in the occupied West Bank.

But his joy turned to fear when, just two days later on Jan. 21, large columns of Israeli army vehicles backed by helicopters and drones stormed the nearby Jenin refugee camp at the start of a major crackdown in the West Bank.

Israel has since blown up some 20 buildings in the camp, sending plumes of heavy smoke over the densely populated area, and carried out air strikes.

It says it is targeting armed groups that receive support from Iran, including Hamas and Islamic Jihad.

The United Nations' Palestinian relief agency (UNRWA) has said that almost all of Jenin camp's 20,000 residents have been displaced over the past two months.

UNRWA said the area "has been rendered a ghost town" in a statement carried by Reuters.

The Israeli military set up roadblocks and checkpoints across the kidney-shaped stretch of land about 100 km (62 miles) long, and dozens of people were killed or injured in fighting.

"After the ceasefire in Gaza, the war here expanded," Kilani, a member of the Committee for Humanitarian Work in Palestine, an aid group active in the West Bank and Gaza, told the Thomson Reuters Foundation.

"We saw destruction that we did not anticipate seeing. Even though we heard about it, we did not expect it to happen so quickly and in this way."

Since that incursion, hundreds of Israeli troops backed by helicopters, drones and armored vehicles have been waging sporadic gun battles with Palestinian fighters while carrying out searches in streets and alleyways for weapons and equipment.

At least 25 Palestinians have been killed, including nine members of armed groups, a 73-year-old man and a 2-year-old girl, according to Palestinian officials. The Israeli military says it has killed at least 35 gunmen and detained more than 100 wanted people.

Israeli roadblocks have made travelling even short distances between towns and villages into an hours-long trial for Palestinians.

"Nothing can describe the situation we are living in, and every day is worse than the day before. If we discuss something now, it would be worse in a couple of hours," Kilani said.

Relatively well-off friends who once raced to dish out alms and aid are now themselves on the lookout for charity, he said. People have locked themselves indoors to avoid the incessant security operations and Israeli checkpoints, he added.

"Sometimes I scream at myself - what are we headed towards?"

ECONOMIC FREE FALL

The war in Gaza - where more than 47,000 people have been killed and almost the entire population of 2.3 million displaced in a landscape reduced to rubble by Israeli air strikes - was already taking a heavy toll on the occupied West Bank's economy.

The conflict started on Oct. 7, 2023 when Hamas-led fighters attacked southern Israel, killing about 1,200 people and seizing 250 hostages, according to Israeli tallies.

Hundreds of people have been killed in the West Bank since the start of the war in Gaza. Many of the dead were gunmen, but young people throwing stones and civilians were also killed, and thousands have been arrested.

Palestinian attacks in the West Bank and Israel have also killed dozens of Israelis. On Tuesday, two Israeli soldiers were killed and eight wounded when a gunman opened fire on troops in the area, setting off a gunfight in which the shooter was killed by Israeli soldiers, the Israeli military said.

Economic activity in the occupied West Bank fell by 23% in first half of 2024, the World Bank said in a report in December.

Unemployment stands at about 35% as Palestinian laborers have been banned from travelling to work in Israel since October 2023.

Before then, about 177,000 Palestinians worked in Israel. By the second quarter of 2024, the number had dropped to 27,000, the World Bank said.

Many of the Palestinians employed by the Israeli economy work in settlements in the West Bank, according to the International Labour Organization (ILO).

"The conflict's impact has now exceeded all previous economic crises in the Palestinian territories over the past two decades," the World Bank report noted.

Economic contraction in the occupied West Bank is estimated to have more than doubled the short-term poverty rate from 12% in 2023 to 28% by mid-2024, the ILO said last year.

In August, Israeli banks began refusing shekel cash transfers from Palestinian banks in the West Bank, a move that Palestinian officials said could soon prevent Palestinians from accessing vital goods and services.

Olive oil bandits have also appeared as desperate people steal olives from groves with the intent of pressing them into oil and selling them on the black market, Kilani said.

"This wasn't something that existed before," he said.

He described a society coming apart at the seams.

"It is not that one school is closed; it is that schools have been closed for a year; health (clinics) are closed, and people cannot get their medicine," Kilani said.

"Companies are closing, banks are closing, and people cannot get to their lands to plant them."

NO WORK

Israel has occupied the West Bank of the Jordan River, which Palestinians want as the core of an independent state, since the 1967 Middle East war.

It has built Jewish settlements there that most countries deem illegal. Israel disputes this and cites historical and Biblical ties to the land.

The United Nations Human Rights office says the new Israeli military operation in the West Bank could endanger the Gaza ceasefire and has called for an immediate end to the violence and a halt on expanding settlements.

As economic prospects disappear, residents like Robeen Idris are becoming increasingly desperate.

The 45-year-old lives in Hebron in the southern West Bank with his wife, seven children and parents. His mother has cancer, and his dad wears a pacemaker.

"There is no work because the roads are closed, and the situation is difficult," he said. "I cannot spend money to buy them food, water, and medicine."

Idris has been unemployed since August 2023. Before then, he worked in sanitation in Israeli hotels. Now those jobs are out of reach, and he has developed diabetes, which he blames on stress.

Economic conditions are forcing business and factory owners to cut their workforce, often replacing laborers like himself with their own family members, he added.

"There is no need for them to employ strangers," he said.



Wright to Asharq Al-Awsat: Diversification, Investment Can Go Hand in Hand

US Energy Secretary during the press conference at the Saudi Energy Ministry (Reuters)
US Energy Secretary during the press conference at the Saudi Energy Ministry (Reuters)
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Wright to Asharq Al-Awsat: Diversification, Investment Can Go Hand in Hand

US Energy Secretary during the press conference at the Saudi Energy Ministry (Reuters)
US Energy Secretary during the press conference at the Saudi Energy Ministry (Reuters)

Amid growing global economic uncertainty driven by trade tariffs and their impact on oil prices, US Energy Secretary Chris Wright visited the Middle East this week, delivering a pointed message: energy abundance is essential for economic growth.
Wright stressed the importance of increasing supply to meet rising global demand, and urged Washington’s allies in the region to play a stronger role in stabilizing energy markets by boosting output.
Wright’s four-day visit to Saudi Arabia followed earlier stops in the United Arab Emirates and preceded his current visit to Qatar, part of a broader regional tour. His trip comes ahead of a planned visit to Saudi Arabia by US President Donald Trump in May.
During his meetings in the kingdom, particularly with Saudi Energy Minister Prince Abdulaziz bin Salman, Wright discussed prospects for strengthening bilateral cooperation across various segments of the energy sector.
During his visit, Wright announced a forthcoming agreement between the United States and Saudi Arabia covering a wide range of energy-related fields. The deal, expected to be signed at a later date, will focus on the development of energy resources and infrastructure, including mining, civil nuclear technology, and power generation.
Wright’s tour also included stops at King Abdullah University of Science and Technology (KAUST), the headquarters of state oil giant Saudi Aramco in Dhahran, King Fahd University of Petroleum and Minerals, and the King Abdullah Petroleum Studies and Research Center (KAPSARC).
Wright said the United States and Saudi Arabia share a unified vision to deliver more affordable energy at a time when global demand is expected to surge.
Speaking to Asharq Al-Awsat ahead of his stop in Qatar, Wright said Washington welcomes global producers who are working with the US administration to cut costs by increasing energy output, while maintaining market stability and security.
Wright dismissed concerns that Trump’s push to lower oil prices could undermine Gulf countries’ economic diversification strategies or discourage investment.
He said the United States has strong ties with Gulf Cooperation Council (GCC) states and that the message to partners in the Middle East is clear: energy abundance and economic growth are closely linked.
He added that President Trump’s commitment to lowering energy costs for Americans goes hand in hand with expanding investment relations with Gulf allies.
Wright stressed that the US is not asking partners to choose between diversification and investment.
Instead, the administration promotes energy diversification—calling for more innovation, more projects, and more opportunities for mutually beneficial growth. He said countries in the region are not seen only as energy producers, but as strategic partners in shaping the energy systems of the future.
Wright’s comments come as Gulf states deepen their economic engagement with Washington. Saudi Crown Prince Mohammed bin Salman told President Trump in a recent phone call that Riyadh plans to expand trade and investment ties with the US by as much as $600 billion over the next four years, with potential for further increases if new opportunities arise. The UAE has also pledged around $1.4 trillion in investments over the next decade.
Wright said the US is highly encouraged by recent investment announcements from both the UAE and Saudi Arabia, as well as earlier Qatari commitments made during Trump’s first term, which are now producing results.
He said whether it involves AI infrastructure, liquefied natural gas, or nuclear innovation, the United States remains the most attractive and reliable destination for foreign investment.
He noted that the Trump administration is fostering a regulatory environment that encourages growth and innovation while offering competitive returns. He welcomed the capital, expertise, and long-term vision of US partners in building a secure and prosperous global energy future.
Wright also addressed US efforts to ensure stable global oil supplies amid sanctions on major producers like Iran, Venezuela, and Russia.
He said the scale of growing energy demand is clear when considering both the energy-intensive development of artificial intelligence and the reality that only one billion of the world’s eight billion people currently enjoy access to energy-rich lifestyles.
He said Trump is pursuing an energy expansion agenda focused on improving global living standards.
The US, Wright said, is already playing its part, producing record volumes of oil and natural gas. He urged Middle East allies to help meet rising demand, diversify sources of supply, and continue delivering reliable, affordable energy to global markets.
Wright, accompanied by Saudi Energy Minister Prince Abdulaziz bin Salman, visited Dammam Well No. 1—the first oil well drilled in Saudi Arabia in 1935 by the Arabian American Oil Company, later known as Saudi Aramco.
The site marked the launch of the kingdom’s oil industry and a turning point in its economic transformation.
Reflecting on his visit to Dammam Well No. 1, Wright told Asharq Al-Awsat that Saudi-US energy cooperation began 90 years ago, when the first oil well in Saudi Arabia was drilled by a predecessor to Chevron in partnership with the Saudi government.
He recalled how, after spending large sums and drilling seven dry wells, the company was on the verge of abandoning exploration in the kingdom. But Max Steineke, a bold American geologist, refused to give up—he drilled deeper and struck oil, changing the course of Saudi history, benefiting both nations, and reshaping the path of global economic prosperity.
Wright said the visit reinforced his confidence that the US-Saudi relationship remains vibrant today. Working together, he added, the United States aims to achieve prosperity at home and promote peace across the globe.