Overview

• The U.S. State Department said it is “very troubled” by the decision and called the claims against Caterpillar and Israel “illegitimate.”
• Norway’s $2 trillion sovereign wealth fund said last week it divested after its ethics watchdog found Caterpillar equipment was used for extensive violations of international humanitarian law in Gaza and the West Bank.
• The watchdog cited the widespread unlawful destruction of Palestinian property and said Caterpillar had not implemented measures to prevent such use.
• Caterpillar has not responded to media requests for comment on the divestment.
• Senator Lindsey Graham suggested retaliatory steps such as tariffs and visa revocations, and reporting in Israel noted the move follows broader exclusions of Israel-linked firms under the fund’s ethics review.