The Economy in the Occupied West Bank Is Being Dismantled by Israel, Report Says

 Palestinian farm workers harvest grape vines at the Samer Hamdan vineyards in the village of Beit Hasan on the outskirts of the Jordan Valley, east of Nablus in the Israeli-occupied West Bank, on June 13, 2026. (AFP)
Palestinian farm workers harvest grape vines at the Samer Hamdan vineyards in the village of Beit Hasan on the outskirts of the Jordan Valley, east of Nablus in the Israeli-occupied West Bank, on June 13, 2026. (AFP)
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The Economy in the Occupied West Bank Is Being Dismantled by Israel, Report Says

 Palestinian farm workers harvest grape vines at the Samer Hamdan vineyards in the village of Beit Hasan on the outskirts of the Jordan Valley, east of Nablus in the Israeli-occupied West Bank, on June 13, 2026. (AFP)
Palestinian farm workers harvest grape vines at the Samer Hamdan vineyards in the village of Beit Hasan on the outskirts of the Jordan Valley, east of Nablus in the Israeli-occupied West Bank, on June 13, 2026. (AFP)

The economy in the West Bank is teetering toward collapse as Israel maintains a web of restrictions that limit opportunities for Palestinians living under long-term military occupation, according to a new report from a leading conflict tracker.

The International Crisis Group says that Israeli measures restricting movement, withholding revenue and taking land are not only crippling the Palestinian economy but also fueling deep instability.

“The economic conditions necessary for any Palestinian future other than permanent subjugation are being dismantled,” it says.

The report, based on interviews with Palestinian business leaders, mayors and government officials, details the financial crisis afflicting companies, households and the internationally backed Palestinian Authority, which administers cities and towns in the West Bank.

It says Israeli policies suggest a concerted effort to “advance Israel’s own declared goal of extending its control and preventing a Palestinian state from emerging.”

Throughout decades of military occupation, the Palestinian economy has been hobbled by checkpoints and military gates that curtail movement of people and goods.

Households and businesses have relied heavily on jobs and imports tied to Israel, and faced restrictions on land and trade.

The roughly 3.4 million Palestinians living in the West Bank today face roughly 30% unemployment and have seen their economy contract substantially since the start of the Israel-Hamas war.

After Hamas’ Oct. 7, 2023, attack, Israel revoked work permits for most of the nearly 200,000 Palestinians who had worked there previously. Officials cited security but in effect, it deprived the Palestinian economy of nearly $400 million a month, or almost one-fourth of its overall economic output.

Many businesses today are struggling to pay workers, contractors and suppliers, with private companies seeing an estimated 50% decline in business since before the war, “reflecting tightened movement controls, disrupted supply chains and heightened uncertainty,” the report says.

“Palestinian society survives, but in a state of grinding immiseration. Absent remedies, the result will likely be a loss of hope and a growing risk of instability and greater violence,” it says.

As the occupied West Bank's largest employer and service provider, the Palestinian Authority is at the heart of the crisis. Government agencies have borrowed heavily to stay afloat as public sector workers go unpaid and infrastructure like roads and water lines crumble. The inability to fund public services is keeping patients out of hospitals and kids out of school.

Most of the PA's money comes from taxes collected on goods entering the West Bank through Israeli ports, because Palestinians do not control their own borders. But under hard-line ministers in Israeli Prime Minister Benjamin Netanyahu’s government, Israel has withheld billions of dollars in owed tax revenue and unilaterally imposed deductions on the funds. No transfers have been made since May 2025.

Joost Hiltermann, International Crisis Group’s special adviser for the Middle East and North Africa, said the world’s focus on more than two years of war in Gaza had drawn attention away from the West Bank, but that changes taking place now could have arguably wider consequences for Palestinians’ future aspirations.

Hiltermann, who wrote the report, said Israeli officials, who exert considerable control over many of the policies in question, did not agree to be interviewed. But he noted disagreements within Netanyahu’s government, with settler leaders and security officials often clashing on how to manage the Palestinian economy.

“The security establishment doesn’t want the Palestinian Authority or economy to collapse because they would have to assume the burden of governing the territory in full after essentially destroying it,” he said.



Emboldened Israeli Settlers Lead a Surge of Attacks on Palestinians’ Olive Harvest

A Palestinian woman picks olives during the harvest season in a Palestinian-owned olive grove in the village of Turmus Ayya, northeast of Ramallah in the Israeli-occupied West Bank, on October 20, 2026. (AFP)
A Palestinian woman picks olives during the harvest season in a Palestinian-owned olive grove in the village of Turmus Ayya, northeast of Ramallah in the Israeli-occupied West Bank, on October 20, 2026. (AFP)
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Emboldened Israeli Settlers Lead a Surge of Attacks on Palestinians’ Olive Harvest

A Palestinian woman picks olives during the harvest season in a Palestinian-owned olive grove in the village of Turmus Ayya, northeast of Ramallah in the Israeli-occupied West Bank, on October 20, 2026. (AFP)
A Palestinian woman picks olives during the harvest season in a Palestinian-owned olive grove in the village of Turmus Ayya, northeast of Ramallah in the Israeli-occupied West Bank, on October 20, 2026. (AFP)

Attacks by Jewish settlers have surged this year during the Palestinians’ annual olive harvest in the occupied West Bank.

Scenes of Palestinians, journalists and diplomats beaten by masked men spotlight how settlers have been establishing themselves deeper in Palestinian communities, emboldened by Prime Minister Benjamin Netanyahu ’s government. At least four Palestinians have been killed this season, whether by settlers or Israeli soldiers.

The violence has brought new international criticism at a time when Netanyahu faces a razor-thin race in next Tuesday's legislative elections. But the prime minister is doubling down. After a West Bank shooting attack blamed on Palestinian gunmen that killed two Israeli soldiers on Friday, Netanyahu praised settlers as “heroic” and vowed to “destroy the terror infrastructure and establish more and more settlements.”

Here’s a look at the olive harvest and the tensions around it:

Palestinian Kamal Haloum walks in an olive grove during the olive harvest in the West Bank village of Al-Mazraa al-Sharqiya, Friday, Oct. 23, 2026. (AP)

Palestinians’ ties to the land are challenged

Olive groves across the West Bank represent both heritage and needed income. The harvest traditionally has been a joyous occasion for Palestinians to gather and be thankful for another year.

“In the past, harvesters would enjoy a month of singing and fixing tea and coffee in their groves. Now the journey is full of pain and risk,” said Abbas Milhem of the Palestinian Farmers’ Union.

But the harvest has become a time of friction as Palestinians spread out and, simply by picking olives, assert their ties to the land that many Israeli settlers say should belong to Israel instead.

Olive trees have been destroyed and olives stolen in over 325 incidents of settler violence this harvest season, which began in late September, Israeli rights group Yesh Din says. Over 130 of those incidents involved physical assaults on harvesters.

Yesh Din and the farmers’ union call this harvest the most violent in recent history.

One Palestinian, Abel Atif Bazaari, said last week outside the village of Burqa near Nablus that olives are more than just a crop. He ran his fingers along a branch. “Protected, respected. I think in all religions, olives are respected,” he said. “This is the identity of the Palestinians.”

His cousin, a security guard, was killed when responding to an attack on the family's land this season. Bazaari was hurt. A bandage covered his temple near his blackened left eye. They have paused the harvest, he said. The land has been in the family for over a century.

Israeli military vehicles patrol an area during the olive harvest in the town of Turmus Ayya, in the West Bank, 23 October 2026. (EPA)

West Bank outposts have surged under Netanyahu

Since 2023, Israeli settlers have erected more than 180 new outposts in the West Bank, most of them close to Palestinian communities and often on their farmland, according to Peace Now, a watchdog group. Settlers from those outposts have largely been behind intensifying attacks on Palestinians since the war in Gaza began with the Hamas-led assault on Israel on Oct. 7, 2023.

On Wednesday, a joint statement by activists and rabbis from the United States, Israel and the West Bank called the attacks on the harvest and Palestinian farmers part of “ethnic cleansing” in the territory. Israel has denied allegations, previously made by Britain as well, of ethnic cleansing.

The outposts — often made up of a few mobile homes — are not authorized, but the military rarely takes action against them. Palestinians trying to fend off the settlers have been accused of throwing rocks or chunks of concrete.

Netanyahu’s government relies on the support of far-right parties and has dramatically expanded settlements as a way to strengthen Israel’s grip on the West Bank and prevent any potential Palestinian state. Far-right Finance Minister Bezalel Smotrich, a settler leader who is in charge of settlement policy, has sought to steer funding to unauthorized outposts.

Most of the international community views all settlements as illegal and an obstacle to peace. “The clear goal is to drive communities off their land,” UN Secretary-General Antonio Guterres said Thursday of settler attacks.

A Palestinian worker unloads freshly harvested olives for processing at an olive press in Turmus Ayya, northeast of Ramallah in the Israeli-occupied West Bank, on October 20, 2026. (AFP)

Outsiders visit in solidarity and are attacked

The olive harvest draws activists, diplomats, rabbis, journalists and others who seek to show solidarity with Palestinians and document attacks and intimidation.

Sometimes they are attacked, too.

A photographer for The Washington Post, Heidi Levine, is recovering after settlers last Friday beat her so badly that several vertebrae were broken and a finger was nearly detached. The following day, masked settlers wielding metal bars attacked a French mayor among a group of diplomats from France, Belgium and Poland at another harvest.

On Wednesday, a US congressional candidate from New York, Brad Lander, was among a group of American rabbis and others detained by Israeli troops at a harvest before being released hours later.

Rights groups say settlers are rarely punished, though several were arrested after last week’s high-profile attacks. Police said most were later released as investigations continue.

It’s becoming harder for Palestinians to reach their land. Peace Now says they have been required to coordinate with Israel’s military to access more of their privately owned farmland than previously. The West Bank is a patchwork of areas under varying levels of Palestinian civil and Israeli military control.

Some of those who coordinate with the military are still attacked, Milhem with the farmers’ union said. He estimated that roughly 110,000 Palestinian families depend on privately owned groves for income that reaches into the millions of dollars in all.

“Palestinian farmers do not — and should not — need permits to harvest their own olive fields,” Lander said Thursday on X, adding that Wednesday’s visit was meant to “call attention to the horrors of the occupation.”

A Jewish settler walks towards olive trees owned by Palestinians due to be harvested, near the Israeli settlement Neve Daniel, in the Israeli-occupied West Bank, October 12, 2026. (Reuters)

‘Handful of criminals’

Settler attacks on Palestinians rarely bring an outcry in Israel, but some Israeli senior politicians and officials have spoken out after Levine was beaten.

Netanyahu’s main rival in the elections, Gadi Eisenkot, said on X that “a handful of criminals is burning up the last shreds of legitimacy left to the state of Israel.” Eisenkot has backed settlement building in the West Bank but says he would shut down the unauthorized outposts.

Levine told the AP that Israeli President Isaac Herzog told her “he’s ashamed for what happened: ‘These people are a stain on Israeli society.’” Herzog has denounced settler attacks against Palestinians in the past.

Netanyahu, meanwhile, has questioned the circumstances around some attacks on the olive harvest and alleged a “coordinated campaign to smear Israel” following the weekend attack on diplomats.

He has blamed overall attacks in the West Bank on a small number of troublemakers.


Italy Calls for Release of Five Activists Held by Israel in West Bank

Italy's Foreign Minister Antonio Tajani (R) speaks to media after the meeting of the top diplomats of the R4 mechanism and the European E3 mechanism, in Istanbul on October 23, 2026. (AFP)
Italy's Foreign Minister Antonio Tajani (R) speaks to media after the meeting of the top diplomats of the R4 mechanism and the European E3 mechanism, in Istanbul on October 23, 2026. (AFP)
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Italy Calls for Release of Five Activists Held by Israel in West Bank

Italy's Foreign Minister Antonio Tajani (R) speaks to media after the meeting of the top diplomats of the R4 mechanism and the European E3 mechanism, in Istanbul on October 23, 2026. (AFP)
Italy's Foreign Minister Antonio Tajani (R) speaks to media after the meeting of the top diplomats of the R4 mechanism and the European E3 mechanism, in Istanbul on October 23, 2026. (AFP)

Italy has called for the immediate release of five Italian activists, all women, held by Israeli forces in the West Bank, Foreign Minister Antonio Tajani said on Friday.

Italian foreign ‌ministry sources ‌said the ‌women ⁠were detained on Thursday ⁠by Israeli police in Kiryat Arba along with other international activists, while seeking to protect Palestinian farmers ⁠during the olive harvest.

"What ‌happened ‌is unacceptable, they were ‌not committing any crime," ‌Tajani told reporters on the sidelines of an international summit in Istanbul, adding ‌he hoped they would be released in ⁠a ⁠matter of hours.

The women were expected to be transferred to Israel's immigration authority on Friday pending expulsion and repatriation procedures, Israeli authorities told Italian diplomats earlier in the day, according to the sources.


Middle East, European FMs Hold Talks on Regional Developments in Istanbul

Italian Foreign Minister Antonio Tajani (L), Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah (2-L), French Foreign Minister Jean-Noel Barrot (3-L), German Foreign Minister Johann Wadephul (4-L), Turkish Foreign Minister Hakan Fidan (4-R), British Foreign Minister Edward Miliband (3-R), Pakistani Foreign Minister Ishaq Dar (2-R) and Egyptian Foreign Minister Badr Abdelatty (R) pose for a group photograph during the R4 and E3 foreign ministers' meeting in Istanbul, Türkiye , 23 October 2026. (EPA)
Italian Foreign Minister Antonio Tajani (L), Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah (2-L), French Foreign Minister Jean-Noel Barrot (3-L), German Foreign Minister Johann Wadephul (4-L), Turkish Foreign Minister Hakan Fidan (4-R), British Foreign Minister Edward Miliband (3-R), Pakistani Foreign Minister Ishaq Dar (2-R) and Egyptian Foreign Minister Badr Abdelatty (R) pose for a group photograph during the R4 and E3 foreign ministers' meeting in Istanbul, Türkiye , 23 October 2026. (EPA)
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Middle East, European FMs Hold Talks on Regional Developments in Istanbul

Italian Foreign Minister Antonio Tajani (L), Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah (2-L), French Foreign Minister Jean-Noel Barrot (3-L), German Foreign Minister Johann Wadephul (4-L), Turkish Foreign Minister Hakan Fidan (4-R), British Foreign Minister Edward Miliband (3-R), Pakistani Foreign Minister Ishaq Dar (2-R) and Egyptian Foreign Minister Badr Abdelatty (R) pose for a group photograph during the R4 and E3 foreign ministers' meeting in Istanbul, Türkiye , 23 October 2026. (EPA)
Italian Foreign Minister Antonio Tajani (L), Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah (2-L), French Foreign Minister Jean-Noel Barrot (3-L), German Foreign Minister Johann Wadephul (4-L), Turkish Foreign Minister Hakan Fidan (4-R), British Foreign Minister Edward Miliband (3-R), Pakistani Foreign Minister Ishaq Dar (2-R) and Egyptian Foreign Minister Badr Abdelatty (R) pose for a group photograph during the R4 and E3 foreign ministers' meeting in Istanbul, Türkiye , 23 October 2026. (EPA)

Foreign ministers from eight European and Middle Eastern countries met in Istanbul on Friday in an unprecedented format for talks on reopening the Strait of Hormuz and crises across the Middle East.

Ministers from Britain, France and Germany -- the so-called E3 -- as well as Italy met counterparts from Saudi Arabia, Egypt, Pakistan and Türkiye to discuss the Palestinian-Israeli conflict, Yemen, Hormuz -- a crucial trade route blocked in the Iran war -- and ways to end the Russia-Ukraine conflict.

The talks began at an Istanbul hotel overlooking the Bosphorus, after separate meetings of top European diplomats and diplomats from regional countries.

French Foreign Minister Jean-Noel Barrot said a new escalation between Iran and the United States "would create nothing but losers and would undoubtedly have very serious consequences for hydrocarbon prices".

"And so the first thing this group of eight countries ... will do is call on both sides to exercise the utmost restraint, because we cannot afford another escalation in the region," he told journalists on the sidelines of the talks in Istanbul.

Italy's Antonio Tajani said the aim was to work for "de-escalation to guarantee freedom of navigation".

"I do not believe the problem can be solved from a purely military standpoint," he said.

"If we want to reopen Hormuz, which is vital for our economies, we must promote dialogue and make Iran understand that this attitude cannot continue."

Egyptian Foreign Minister Badr Abdelatty (L), Saudi Foreign Prince Faisal bin Farhan bin Abdullah (2-L), Pakistani Foreign Minister Ishaq Dar (3-L), Turkish Foreign Minister Hakan Fidan (4-L), French Foreign Minister Jean-Noel Barrot (4-R), German Foreign Minister Johann Wadephul (3-R), British Foreign Secretary Edward Miliband (2-R) and Italian Foreign Minister Antonio Tajani (R) pose for a group photograph during the R4 and E3 foreign ministers' meeting in Istanbul, Türkiye, 23 October 2026. (EPA)

- 'Iranian tactics' -

Turkish Foreign Minister Hakan Fidan hosted the meeting as Türkiye stepped up efforts to strengthen its regional role, including through the Makkah Defense Alliance, a defense pact launched with Saudi Arabia and Pakistan in August.

Türkiye has said the pact is not aimed at any specific country and remains open to others, including Egypt.

"Our platform has several advantages, particularly because it is informal and flexible and focuses specifically on the issues we face. It allows us to exchange information and coordinate our positions more effectively," Fidan told reporters.

"We are not aware of any other platform that brings together countries with such different geographical and political backgrounds. Türkiye, in particular, is well placed to play a constructive role in this process."

Cairo has yet to decide whether to join the alliance. On Wednesday, President Abdel Fattah al-Sisi said Egypt would "defend Saudi territory" and would not take part in any attack on Yemen.

Iran-backed Houthis are battling Yemen's legitimate government and have launched attacks on Saudi Arabia.

British foreign minister Ed Miliband's office said ahead of the talks they would essentially revolve around "the Strait of Hormuz and the situation in Saudi Arabia".

It said Miliband would "advocate for a diplomatic solution to the (Hormuz) crisis that restores full navigational rights and freedoms".

He was also to stress "how Iranian tactics are being replicated across the region, with attacks on Saudi Arabia further destabilizing the region and increasing pressure on vital waterways and global chokepoints, such as Bab al-Mandeb and the Suez Canal".

Saudi Arabia's Foreign Minister Prince Faisal bin Farhan bin Abdullah attends the meeting of the top diplomats of the R4 mechanism and the European E3 mechanism in Istanbul on October 23, 2026. (AFP)

- 'De-escalation' -

Fidan stressed that regional security required countries in the region to assume responsibility and that Ankara prioritized cooperation mechanisms based on "regional ownership".

"Regional frameworks turn into credible platforms for action and cooperation", he said ahead of the talks.

"Stability cannot simply be imported, and lasting solutions cannot be imposed from outside. Those who live with conflict must play a central role in resolving it," he added.

The eight countries "decided, after very constructive discussions, to continue the work by meeting at regular intervals", Barrot said.