Norway Orders Review of $2 Trillion Oil Fund’s Israeli Holdings

Norway has ordered an expedited review of its $2 trillion sovereign wealth fund’s investments in Israeli companies after media reports linked one holding to Israel’s military campaign in Gaza. Prime Minister Jonas Gahr Støre said he had asked Finance Minister Jens Stoltenberg to examine the fund’s stake in Bet Shemesh Engines Holdings, which supplies parts for fighter-jet engines used by Israel. Norges Bank Investment Management, which runs the Government Pension Fund Global, confirmed it bought shares in Bet Shemesh in 2023 and has since increased its holding to more than 2%. Spokeswoman Line Aaltvedt said the fund will “immediately start a thorough review” of all Israeli positions and of its broader responsible-investment framework. The probe follows criticism from lawmakers and civil-society groups who argue the investment conflicts with the fund’s ethical guidelines. The finance ministry has asked the fund’s ethics council to reassess whether companies tied to military activities in Gaza meet those standards, while keeping the fund’s management independent under existing rules.