FACTBOX - Week of isolation: Israel faces diplomatic, economic setbacks ahead of Netanyahu’s UN speech

Trump rejects West Bank annexation, more countries recognize Palestine, UN experts call for Israel’s suspension from football

ISTANBUL

Israel suffered one of its most challenging weeks on the international stage, as a cascade of diplomatic, political, and economic setbacks highlighted the growing global frustration and outrage over its devastating war in Gaza.

Here are the major blows Israel faced this week:

No new German arms sales to Israel

The government of Chancellor Friedrich Merz has not approved any new arms sales to Israel since early August, it was revealed on Thursday. A partial arms export ban was imposed on Aug. 8 and until Sept. 12, “no approvals” were granted, according to a response by the Economy Ministry.

The Left Party demanded a total embargo, warning Berlin risked complicity in “crimes under international law against the Palestinian civilian population.”

Trump rejects West Bank annexation

US President Donald Trump bluntly rejected Israel's push to annex the occupied West Bank.

“I will not allow Israel to annex the West Bank. Nope, it’s not going to happen,” Trump told reporters on Thursday.

Netanyahu has vowed not to allow a Palestinian state and far-right members of his cabinet threatened to annex the West Bank in response to the recent recognition of Palestine by several Western countries.

European recognition of Palestine

European recognition of Palestinian statehood accelerated, breaking with Israel’s narrative of indefinite occupation.

Six more countries – Luxembourg, Belgium, Andorra, France, Malta, Monaco, and San Marino – officially recognized the state of Palestine on Monday during a high-level summit in New York ahead of the UN General Assembly.

The move came just a day after the UK, Canada, Australia, and Portugal announced recognition, raising the total number of countries that have recognized Palestine to 159 out of 193 UN member states since the late Palestinian leader Yasser Arafat proclaimed the establishment of the state in Algiers in 1988.

Naval protection for Sumud flotilla

Italian Prime Minister Giorgia Meloni’s government, together with Spain, went further by deploying naval vessels to escort the Global Sumud Flotilla on its way to break Israel’s siege of Gaza. The aid flotilla has come under repeated attacks, with Israel believed to be behind them. The move marked an unprecedented break with Israel’s European allies.

Meloni also accused Israel of “crossing the line of proportionality” in its Gaza campaign, declaring that the country “has no right to prevent the creation of a Palestinian state.”

Her remarks marked a striking shift from a government that had been one of Israel’s strongest allies in Europe since the outbreak of the war.

Microsoft suspends cooperation with Israeli military

Adding to Israel’s woes, US technology giant Microsoft confirmed on Thursday it has suspended cloud services agreements with the Israeli military after an internal probe found the technology was being used for mass surveillance of Palestinians, raising concerns of complicity in war crimes.

UN experts call for Israel’s suspension from FIFA and UEFA

International pressure also extended to the sports world. On Tuesday, UN human rights experts urged FIFA and UEFA to suspend Israel’s national football team, citing findings by the International Court of Justice and the UN Commission of Inquiry that Israel is committing genocide in the Gaza Strip.

“Sports must not turn a blind eye to grave human rights violations, especially when their platforms are used to normalize injustices,” the experts said, stressing a moral duty to act.

The mounting setbacks are expected to resonate at the UN, as Netanyahu is scheduled to address the General Assembly on Friday. Observers say many delegations may walk out in protest, a sign of deepening frustration with Israel’s policies and conduct in the Gaza war.

The Israeli army has killed more than 65,500 Palestinians, most of them women and children, in the Palestinian enclave since October 2023. The relentless bombardment has rendered the enclave uninhabitable and led to famine.