HEADLINES - **US Considers Sanctions on Israeli Finance Minister Over West Bank Destabilization** - **Netanyahu's Coalition Faces Turmoil Amid Internal Disputes and Legislative Failures** - **Iranian-Swedish Academic Criticizes Exclusion from Prisoner Swap, Sparks Human Rights Outcry** The time is now 11:00 AM in New York, I'm Noa Levi and this is the latest Israel Today: Ongoing War Report. The United States is currently contemplating the unprecedented step of sanctioning an Israeli minister, specifically Finance Minister Bezalel Smotrich, under an executive order signed by President Joe Biden. This order targets individuals whose actions are perceived to destabilize the West Bank. During a recent Senate hearing, Democratic Senator Chris Van Hollen questioned US Assistant Secretary of State for Near Eastern Affairs, Barbara Leaf, about Smotrich's efforts to withhold significant funds from the Palestinian Authority (PA). Leaf acknowledged that such actions do indeed threaten the stability of the West Bank, though she did not confirm whether Smotrich was being considered for sanctions, citing the administration's policy of not discussing potential sanctions publicly. Privately, however, there has been discussion among senior Biden administration officials regarding this possibility. The concern in Washington is that the collapse of the PA, which is heavily reliant on the withheld tax revenues, could lead to chaos in the West Bank. Such a scenario might be exploited by Hamas and Palestinian Islamic Jihad, creating a new front to the ongoing conflict in Gaza. The US also fears that a PA collapse would derail plans for postwar Gaza, where Washington hopes to reinstate a reformed PA to govern both the West Bank and Gaza. The Biden administration is not only pressuring Israel to release the funds but also urging Arab allies to provide financial support to the PA. However, Arab nations have indicated that they will only donate once Israel releases the withheld funds. This sentiment was echoed by officials from Qatar, Saudi Arabia, the United Arab Emirates, Algeria, and Kuwait during discussions with US Secretary of State Antony Blinken. Israel’s security establishment shares the US concerns, warning that the country could find itself responsible for providing civil services to approximately three million Palestinians in the West Bank if the PA collapses. However, this view is not universally held within Prime Minister Benjamin Netanyahu’s government. Some factions within his coalition believe that the PA’s collapse could pave the way for Israel to annex the West Bank. Finance Minister Smotrich’s office defended the withholding of funds, asserting that the PA supports terrorism and acts against Israel on the international stage. The Oslo Accords mandate that Israel transfer tax revenues collected on behalf of the PA, which constitute about 70% of the PA’s annual revenue. In recent years, Israel has deducted amounts equivalent to the stipends paid by the PA to Palestinian prisoners and families of deceased attackers. Smotrich has intensified these measures since his appointment, further limiting the funds transferred to the PA and demanding additional punitive steps against the PA for international actions perceived as hostile to Israel. In the political sphere, Prime Minister Netanyahu is facing significant internal challenges within his coalition. The withdrawal of a contentious bill aimed at expanding the Chief Rabbinate’s authority has caused a rift with the ultra-Orthodox Shas and United Torah Judaism (UTJ) parties. These parties now question Netanyahu’s ability to deliver on their legislative priorities, including a bill on mandatory military enlistment for Haredi yeshiva students. The failure of the so-called Rabbis Bill has led to threats from Shas leader Aryeh Deri to potentially bring down the government, further destabilizing...