US says Israeli banks don’t have to close accounts of sanctioned settlers

The sanctions have infuriated Finance Minister Bezalel Smotrich, who characterized them as a draconian obstruction of Israeli sovereignty. In response, the far-right lawmaker threatened to take steps in his capacity as head of the treasury that would significantly impede the Palestinian economy, the Israeli official added, confirming a Thursday report in the Israel Hayom daily.

Ostensibly wary of such retaliatory actions, the US administration agreed to send a letter to the Finance Ministry clarifying that the sanctions were not intended to cut off those targeted from the entirety of their assets.