March 6, 2025: U.S. Treasury Secretary Scott Bessent and Israeli Finance Minister Bezalel Smotrich announced their agreement to enhance dialogue and collaboration during a meeting focused on the economic partnership between the two countries.
“This is a critical time to shape a new strategic economic future for both countries, reinforcing American global leadership and Israel’s role as a key economic partner,” the two officials stated in a joint release by the Treasury.
The statement emphasized the importance of strengthening dialogue mechanisms to enhance collaboration in key areas, including economic policy, technology, and financial regulation. The coordinated approach aims to ensure that bilateral ties remain a source of economic resilience, innovation, and mutual benefit.
Notably, the statement did not address Israel’s banking relationships with Palestinian banks, a contentious issue under former President Joe Biden’s administration. In December, the Treasury welcomed the Israeli cabinet’s decision to extend indemnification for Israeli banks with ties to Palestinian counterparts for one year, after previously approving only one-month waivers.
Bessent’s predecessor, Janet Yellen, had raised concerns in May about Israel’s threat to sever ties with Palestinian banks, potentially cutting off a critical lifeline for the Palestinian economy.