July 25, 2025, 07:45:03 (IST)
A significant diplomatic rift has emerged between Israel and France following statements from Israeli Prime Minister Benjamin Netanyahu, who warned French President Emmanuel Macron that a Palestinian state would serve as a ‘launch pad to annihilate Israel’, as per a report in Israel National News. This declaration, echoed by other Israeli officials who claim a potential Palestinian state would become a ‘Hamas state’, comes as France considers following other European nations like Spain, Ireland, and Norway in formally recognising Palestinian statehood. From a market perspective, the heightened rhetoric increases geopolitical uncertainty in West Asia, a critical factor that could influence investor sentiment, risk premiums, and potentially impact bilateral trade and technology cooperation between Israel and key European economies.
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