Israeli Banks Threaten to Isolate Palestinian Economy

by Ahmed Ibrahim World Editor
Mourners bury the body of Palestinian Mustafa al-Khatib, 32 who was killed during an Israeli army raid at his home in the

Israeli settlers seized a Palestinian home under construction in Jalud, West Bank, while Israeli forces fatally shot a Palestinian man in Sarta, according to verified reports. The incidents highlight escalating tensions in the region amid expanded settlement activity and military operations.

Settler Expansion and Military Response

The incident in Jalud reflects broader patterns of settler activity in the West Bank, where over 500,000 Israelis reside among 3 million Palestinians. The village council head, Raed al-Haj Mohammad, noted that settlers had moved within 100 meters of the last house in Jalud, which was also under construction. They have now moved down to within no more than 100 meters from the last house in Jalud, he said. The Israeli military attributed enforcement of settlement-related actions to its police, which did not comment on the case.

Settlement building and settler violence have long been among the biggest obstacles to peace efforts between Israel and the Palestinians. Even Israel’s staunchest allies, including the United States, have condemned settler actions. The U.N. inquiry reported last month that Israeli settler attacks on Palestinian villages and agricultural land had surged by 130% since 2023. Residents of Jalud say this week’s incident marks another troubling escalation because the settlers seized a house that was still under construction.

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Item 1 of 2 Jewish settlement of Shilo in the Israeli-occupied West Bank as seen from the Palestinian village of Jalud July 2, 2026. REUTERS/Ali Sawafta. Palestinians have for years reported damage to farmland, vandalism, and attacks linked to settlement expansion. Jalud has faced five major settler attacks, he said, including the burning of homes, damage to vehicles, and the uprooting of trees. Most countries and the U.N. regard Israeli settlements in the West Bank as illegal under international law, citing the Fourth Geneva Convention’s prohibition on transferring a civilian population into occupied territory. Israel rejects that position, saying the West Bank is disputed territory where there has been a Jewish presence for thousands of years.

Fatal Shooting in Sarta

In a separate incident, Israeli forces shot and killed 32-year-old Mustafa Al-Khatib in his home in Sarta, West Bank. A relative described the scene: I entered the house. They had broken the door. He was lying in his bedroom. … We found him on the ground. The Israeli military stated Al-Khatib threw objects at troops, prompting lethal force. Video footage showed ransacked interiors and bloodstains. The Palestinian Health Ministry confirmed Al-Khatib’s death, raising the total number of Palestinians killed in the West Bank to 72 this year.

The Israeli military said it was operating in the area when a man started to throw objects at the soldiers. It said troops fired warning shots before aiming at the man. No independent verification of the military’s account was provided in the sources. The military said it received a report regarding the house in Jalud earlier this week and that soldiers arrived to the area and quickly acted to disperse the gathering. It did not comment on the settlers’ continued presence in the house.

International and Local Reactions

Palestinian officials and residents fear the Jalud seizure signals a broader trend of land grabs. Salameh’s neighbor, who built a two-story house nearby, warned that if we lose this house (his) they will lose theirs. The incident underscores the fragile state of the region, where settlement expansion and military operations often intersect, exacerbating tensions. Settlement expansion has accelerated under Prime Minister Benjamin Netanyahu’s government, which relies on hardline pro-settlement parties to maintain its parliamentary majority.

Jewish settlement of Shilo in the Israeli-occupied West Bank as seen from the Palestinian village of Jalud July 2, 2026
Photo: reuters.com

International condemnation of settler violence has not halted expansion. Even Israel’s allies, including the U.S., have criticized settlement actions, yet enforcement remains inconsistent. As of July 2026, the situation in the West Bank remains volatile, with both settler activities and military operations contributing to a cycle of conflict. The Jalud seizure and Sarta shooting illustrate the human toll of these dynamics, as Palestinian communities face displacement and violence while international efforts to mediate the crisis struggle to gain traction.

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