Norway’s Oil Fund significantly reduced its exposure to Israeli companies in 2025. The decision was taken for political reasons linked to the war in Gaza and the situation in Judea and Samaria. During the same period, the Tel Aviv Stock Exchange delivered one of the world’s strongest rises.
In August 2025, Norges Bank Investment Management (NBIM) divested from 11 Israeli companies that were not included in the fund’s benchmark index. Further divestments followed, including in Israeli banks. The fund justified the sales on the grounds of ‘extraordinary circumstances’ and the ‘humanitarian situation’ in Gaza. Exposure to Israel stood at around 0.1 per cent of the total portfolio.
Whilst Tel Aviv rose, the Oil Fund fell into the red
In 2025, the main indices in Tel Aviv rose by 40–50 per cent, depending on the index and period. The upturn continued into 2026.
In the third quarter of 2026, the Oil Fund reported an accounting loss of approximately 278 billion kroner. The return was minus 0.5 per cent.
In other words, the Israeli sell-off has come at a real cost.
BREAKING: Norway’s 🇳🇴 wealth fund is losing billions after divesting from Israel.
The fund sold off its holdings in Israeli companies over the past year for political reasons.
In that same year, Tel Aviv’s main index rose by 40 per cent, more than double the S&P 500.
Now the fund reports a $30 billion… pic.twitter.com/re25ViYTeW
— Hen Mazzig (@HenMazzig) 22 October 2026
Garry Kasparov mocks the Nobel Committee after the Peace Prize was awarded to Navi Pillay
