A new report by European and Palestinian civil society groups finds that 822 European financial institutions are connected to 58 companies implicated in Israeli settlements increase from 776 institutions in 2023. A report by the Don’t Buy into Occupation coalition calls on such countries to heighten due diligence and possibly divest from companies that, according to most nations, would be contributing to illegal settlement activity.

Increasing Ties as Tensions Intensify

A record expansion of Israeli settlements in the occupied West Bank has been seen, with some settlers holding out hope from the incoming U.S. President Donald Trump to cement their claims over the territory. The rising settler violence has drawn U.S. sanctions, and some business operations in the region have already come to a standstill.

The report includes some of the leading financial institutions, such as BNP Paribas and HSBC that business ties with companies that carry out settlement work. Some of these big companies named in the list include Caterpillar Inc., Booking.com, and Expedia. In some cases, these corporations have acted to increase transparency on their matters; however, the coalition claims that still there is much to do not to endorse the occupation.

Settlements and Legal Ramifications

The West Bank, annexed by Israel during the 1967 Middle East war, is at the center of the Israeli-Palestinian conflict. The settlements are characterized by most countries as unlawful under international law, a stance reinforced recently by the United Nations’ highest court.

Civil society has thus maintained that financial institutions need to rethink their relations with the companies behind these settlements. Andrew Preston of Norwegian People’s Aid remarked, “European financial institutions should immediately reassess their strategy regarding companies engaged in the illegal occupation.” Demand for Accountability

For instance, Norway’s pension fund KLP divested its holdings in companies with ties to settlements, while most of them are operational to date, though they face ongoing international condemnation.

Booking.com recently updated its policies to include information about the location of the properties within disputed territories. Expedia, on the other hand, has marked its presence in Israeli settlement within the Palestinian territories. While these are incremental steps, they do not persuade activists who demand all-rounded accountability.

As settlement activity, along with accompanying commercial ties, grows, this report underlines the strong exigency for intensified scrutiny and an internationally united response in dealing with the deeper economic linkages into Israeli settlements.