Avigdor Liberman warns US could recognize Palestinian state and impose sanctions on Israel within two years

Avigdor Liberman, chairman of Yisrael Beytenu, warned Tuesday that the United States could recognize a Palestinian state and impose sanctions on Israel within two years if current policies continue. Speaking at the annual venture capital summit organized by the Israel Advanced Technology Industries (IATI), Liberman highlighted the potential diplomatic and economic consequences for Israel, particularly its high-tech industry. He emphasized that Israel’s deteriorating international standing posed a significant threat to one of the country’s most important economic engines.

Former prime minister Naftali Bennett, who also addressed the gathering, called for a national effort to bring Israeli entrepreneurs and skilled workers back to the country. Bennett warned that Israel must do more to prevent technology companies from moving their operations abroad. The summit, held as part of EY’s Journey 2026 conference, brought together managing partners and executives from approximately 200 venture capital funds and investment organizations operating in Israel.

Liberman stated that if Israel continued on its current course, the United States could recognize Palestinian statehood and begin imposing sanctions within two years. He also claimed that Britain was already discussing possible sanctions against Israeli banks. “An industry like high-tech requires mobility, the ability to fly, communicate, and be accepted by the international community,” Liberman said. He argued that Israel’s technology sector, which depends heavily on international investors, clients, and partnerships, would struggle to withstand such developments.

Liberman called for urgent efforts to restore Israel’s international standing, including a joint emergency initiative involving the government and Jewish communities abroad to address international public opinion. He said modern conflicts were fought simultaneously on military, diplomatic, and public opinion fronts, warning that declining public support for Israel could eventually translate into diminished political and economic backing.

On economic policy, Liberman called for expanding opportunities for Israeli institutional investors to invest in domestic startups, including through venture capital funds, with appropriate financial guarantees. He also proposed reducing bureaucracy and consolidating regulatory authorities, questioning whether Israel needed separate regulators overseeing securities and capital markets.

The concerns raised by Liberman reflect a broader anxiety within Israel’s political and economic elite about the country’s global image and its implications for the high-tech sector. As international tensions persist, the call for unity and strategic action underscores the complex interplay between diplomacy, public perception, and economic stability. Micah 6:8 calls for justice, mercy, and humility in all actions, a principle that resonates in the pursuit of a stable and respected international presence.

Source: Read the original report