Mon Sep 08 05:10:17 UTC 2025: **Norway’s Election Hinges on Wealth Fund’s Israel Investments Amid Gaza Conflict**

**Oslo, Norway** – As Norway heads to the polls on Monday, the fate of the country’s $2 trillion sovereign wealth fund, the world’s largest, has emerged as a key battleground, particularly concerning its investments in companies linked to Israel’s war in Gaza. The close race between the center-left bloc led by incumbent Labour Party and a center-right bloc dominated by the Progress Party and Conservatives could be decided by the controversy surrounding the fund, which was originally intended to be “non-political”.

The Socialist Left party has stated it will only support a Labour-led government if it divests from companies involved in “Israel’s illegal warfare in Gaza”. While Labour has rejected this demand, a tight election result could force a change in strategy. This debate has intensified after reports revealed a significant increase in the fund’s investment in an Israeli jet engine parts manufacturer, prompting condemnation even from within the Labour party.

The fund, which invests in approximately 9,000 companies globally, has already divested from several Israeli companies and US construction firm Caterpillar due to ethical concerns related to human rights abuses in Gaza and the occupied West Bank. These decisions have drawn criticism, including potential retaliation from the United States, with Republican Senator Lindsey Graham suggesting tariffs and visa revocations against Norway.

Beyond the wealth fund controversy, voters are also focused on inequality, the cost of living, and taxes. The election results are expected to be close, with no single party likely to achieve an outright majority. The final composition of the government will depend on post-election negotiations, potentially leading to continued minority rule under the Labour Party. The outcome will determine the future direction of Norway’s investment strategy and its relationship with both Israel and the United States.

Read More