Norway's sovereign wealth fund has announced a significant divestment from Israeli companies, following mounting public and political pressure over the humanitarian crisis in Gaza. The fund, which manages nearly two trillion dollars globally, revealed it has sold its holdings in eleven Israeli companies and ended contracts with local financial institutions that previously managed its investments. This move comes after a directive from Norway's Ministry of Finance to review the fund's investments in Israel, and amid growing calls from Norwegian NGOs, labor organizations, and media outlets for stricter investment criteria.

The fund cited the worsening situation in Gaza and the West Bank as the main reason for its decision, describing the measures as a response to exceptional circumstances. While the fund previously held stakes in sixty-one Israeli companies, recent months have seen a gradual reduction, with some companies removed due to their involvement in activities beyond the Green Line. The financial impact of the divestment is not yet clear, but the fund has invested about two billion dollars in Israeli firms to date.

Norway's Minister of Finance welcomed the swift action, and the fund plans to further strengthen its due diligence in the region. A press conference is scheduled for Tuesday to provide more details, including the names of the companies removed from the portfolio. Despite the reduction, the fund maintains some investments in Israel, stopping short of a complete withdrawal.