Norway Boycotts Israel? Trump’s Next Move Could Shock Everyone

The Trump administration voiced deep concern over the decision by Norway’s sovereign wealth fund, the largest in the world, with assets of $2 trillion, to divest from U.S. heavy equipment giant Caterpillar due to the use of its D9 bulldozers by the IDF in Gaza and Judea and Samaria. Washington confirmed it is holding direct talks with Oslo and considering possible countermeasures.

The Norwegian fund, managed by the country’s central bank, announced the move on ethical grounds, citing what it called “widespread and systematic violations of international humanitarian law” in the use of Caterpillar machinery, specifically D9 bulldozers, by Israeli forces. The fund’s ethics council claimed Caterpillar failed to take preventive measures against such use, and therefore the investment was no longer permissible under its guidelines.

A US State Department spokesperson said: “We are very concerned about the decision by Norway’s sovereign wealth fund, which appears to be based on illegitimate claims against Caterpillar and the Israeli government. We are engaged in direct discussions with the Norwegian government on this matter.”

Republican Senator Lindsey Graham, a close ally of President Trump, went further, suggesting that Washington should retaliate with tariffs and visa restrictions.

This follows last week’s announcement that the Norwegian fund would also divest from five Israeli banks, Bank Hapoalim, Bank Leumi, Israel Discount Bank, Mizrahi-Tefahot, and investment house FIBI, on the grounds that they provide financial services “essential” to construction activity in Israeli settlements.

As of June 30, the fund’s holdings in these five banks were valued at around $661 million. While the monetary scope is significant, analysts note the greater impact is symbolic: the world’s largest and most influential institutional investor is now placing Israel at the center of its ethical investment policies.