Brussels: The European Commission has expressed its deep concern over Israel's decision to revoke the exemption allowing transactions between Israeli and Palestinian banks, as it threatens to paralyze Palestinian financial institutions. "The EU calls on Israel to revert this decision immediately," EU spokesman Anouar El Anouni said.

According to Oman News Agency, the Palestinian financial and banking system relies heavily on this renewal of the Israeli exemption, which protects Israeli banks from potential legal action related to transactions with Palestinian banks. The vast majority of commercial transactions in the occupied West Bank are conducted in shekels, as the Palestinian Authority does not have a central bank that allows it to issue its own currency.