Former Israeli Prime Minister Naftali Bennett claims that Benjamin Netanyahu’s government signed an agreement paving the way for a Palestinian state, involving coalition members Bezalel Smotrich and Itamar Ben-Gvir, both fiercely opposed to any form of Palestinian statehood. This assertion, if confirmed, could signal a significant shift in Israeli policy, particularly regarding potential U.S. recognition of Palestine before 2027. Markets already reflect an increased probability of U.S. recognition, with indicators consistent with a favorable scenario.
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