Netanyahu Bows to US Pressure, Agrees to Pump Water into Jordan

A picture taken from the Israeli side of the border shows Jordanian soldiers praying in front of a national flag during a ceremony at the Jordan Valley site of Naharayim, also known as Baqura, east of the Jordan River on November 11, 2019. (AFP)
A picture taken from the Israeli side of the border shows Jordanian soldiers praying in front of a national flag during a ceremony at the Jordan Valley site of Naharayim, also known as Baqura, east of the Jordan River on November 11, 2019. (AFP)
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Netanyahu Bows to US Pressure, Agrees to Pump Water into Jordan

A picture taken from the Israeli side of the border shows Jordanian soldiers praying in front of a national flag during a ceremony at the Jordan Valley site of Naharayim, also known as Baqura, east of the Jordan River on November 11, 2019. (AFP)
A picture taken from the Israeli side of the border shows Jordanian soldiers praying in front of a national flag during a ceremony at the Jordan Valley site of Naharayim, also known as Baqura, east of the Jordan River on November 11, 2019. (AFP)

Israeli Prime Minister Benjamin Netanyahu yielded to US pressure and agreed to the Jordanian government’s request for additional supplies of water, after several weeks of stalling.

Political sources in Tel Aviv said that Netanyahu was keen to make this move before US Defense Secretary Lloyd Austin arrived in Israel. The US official visited the country on Sunday.

On Tuesday, Israeli Energy and Water Minister Yuval Steinitz informed his Jordanian counterpart of Netanyahu’s decision to pump ten million cubic meters of water in the Jordan River, out of a total of 65 million cubic meters that it supplies annually.

The peace agreement between Jordan and Israel, signed in 1994, stipulates that Israel permanently supply Jordan with water pumped from the Sea of Galilee to the Jordan River via the King Abdullah Canal, with an amount of 55 million cubic meters per year.

Jordan’s water became scarce due to the Israeli water project that was implemented in the 1950s, according to which the water of the Yarmouk River was diverted to the desert Negev region in the Israeli south. However, Amman agreed to pay 10 US cents per cubic meter for the first 40 million cubic meters and 40 cents for every additional cubic meter.

With the influx of Iraqi and then Syrian refugees into Jordan, the country’s needs for water increased, reaching 55 million cubic meters. Then it demanded another 10 million cubic meters and agreed to pay the higher price to Israel.

But Netanyahu’s decision to delay the approval of the supply this year was not due to any water problem. On the contrary, Israel has seen this year great water abundance thanks to the expansion of a desalination project and a heavy rain season.

Political and security sources in Tel Aviv confirmed that the premier’s decision can be traced to the troubled Israeli-Jordanian relations, which the Haaretz daily described on March 26, as “a personal confrontation between Prime Minister Netanyahu and King Abdullah II.”

The newspaper said that Israeli officials, who have close ties with the Jordanian side, have expressed concern about Netanyahu’s position and the escalating tension between the two neighbors.

The same sources accused the prime minister of intentionally jeopardizing the peace agreements due to his personal enmity with the royal family in Jordan.



Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
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Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)

Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA's nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totaling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday's cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels, Reuters reported.

"The procedure was implemented after several anti-Israeli actions and included Norway's unilateral recognition of a Palestinian state," Smotrich told cabinet ministers.

"The PA's debt to IEC resulted in high loans and interest rates, as well as damage to IEC's credit, which were ultimately rolled over to the citizens of Israel."

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account "a punitive measure linked to the government’s financial support for Gaza.”

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

"This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza," the ministry said.

It added it was working with international partners to secure the release of these funds as soon as possible.