The Norwegian government has ordered a sweeping review of its sovereign wealth fund’s investments in Israeli companies, following growing public anger over revelations tying one of its holdings to the ongoing Israeli genocide in Gaza.

Finance Minister Jens Stoltenberg announced the move during a press conference in Oslo on Tuesday, stressing that the government “understands people are asking questions” about whether the fund, valued at $1.9 trillion, is adhering to its ethical obligations. These guidelines forbid investments in companies implicated in war crimes or serious human rights abuses.

The decision follows an investigative report by Aftenposten, which uncovered that the fund holds shares in Bet Shemesh Engines Holdings, an Israeli company reportedly involved in the maintenance of fighter jets used in attacks on Palestinians in Gaza. The report ignited widespread backlash across Norway.

Worrying complicity

Prime Minister Jonas Gahr Store, responding to the news during a televised program, stated he was “very worried” by the revelations. His comments added pressure on the government to ensure that public funds are not complicit in crimes being committed against Palestinians.

Line Aaltvedt, a spokesperson for the fund, confirmed in a statement that it would “immediately start a thorough review” of all investments related to "Israel" and assess its broader policies regarding ethical and responsible investment.

Mounting pressure from lawmakers, civil society, and human rights groups has intensified since the Israeli entity launched its war on Gaza in October 2023. Norway’s sovereign wealth fund, officially known as Norges Bank Investment Management (NBIM), holds stakes in around 65 Israeli companies, totaling approximately $2.1 billion by the end of 2024. The fund is the world’s largest, owning around 1.5% of all publicly traded equities globally.

Despite the controversy, fund CEO Nicolai Tangen admitted to national broadcaster NRK that Bet Shemesh remains in the fund’s portfolio and is “not currently under review for exclusion,” even as its holdings in the company rose from 1.3% in 2023 to 2.1% in 2024.

In response, Stoltenberg later issued a formal directive to NBIM and its external ethics council, demanding a renewed assessment of all investments connected to the Israeli entity. “The aim is to ensure the fund is not invested in companies contributing to the illegal occupation of the West Bank or to the war in Gaza in ways that violate international law,” he stressed.

Wider context

This reckoning comes at a critical time for Norway’s ruling Labor Party, which is leading in pre-election polls but facing increased scrutiny over its stance on "Israel" and ethical foreign policy. The opposition Green Party has gone further, calling for Tangen’s resignation ahead of his second five-year term as CEO, set to begin this fall.

Prime Minister Store has previously declared that he believes “Israel” has breached international law in Gaza, yet he has not endorsed a full economic boycott. Still, Norway, along with Spain and Ireland, officially recognized Palestinian statehood earlier this year. Several other Western governments, including France, the UK, and Canada, are reportedly considering similar moves by September.

Meanwhile, reports continue to circulate that the Israeli entity is preparing for a possible full-scale occupation of Gaza, even as international condemnation of its starvation blockade and indiscriminate bombing campaign grows louder.