BEIT SAHOUR, West Bank – PNN –A new public opinion poll shows that Palestinians view Israel’s decision not to renew a legal waiver that allows banking relations with Palestinian financial institutions as a serious threat to economic and social stability, amid fears of a broader financial collapse.Israeli Finance Minister Bezalel Smotrich announced in June that he intends to let the waiver expire at the end of November. Analysts say the move goes beyond technical banking issues and serves as political pressure on the Palestinian leadership over its international initiatives, including cases filed against Israel at the International Court of Justice.The survey, conducted by the Palestinian Center for Public Opinion (PCPO) and led by Dr. Nabil Kukali, interviewed a representative sample of 484 Palestinians across the West Bank and Gaza between June and July 2025. It found that 89.1% of respondents see the decision as a direct threat to food security, while 82.4% expect it to hinder the Palestinian Authority’s ability to pay public sector salaries. In addition, 71.1% fear shortages of essential goods such as food and medicine, and 85.6% predict rising social tensions.Political Pressure ToolAccording to the poll, 87.3% believe the Israeli measure is intended to exert political pressure on the Palestinian Authority, and 61.2% view it as punishment for Palestinian diplomatic activity in international forums. Another 69.4%said the decision aims to halt Palestinian moves at global institutions, compared with 12.2% who blamed U.S. pressure and 9.2% who linked it to Palestinian action at the International Court of Justice.Economic and Social RisksNearly 46.8% expect the halt in banking ties with Israeli banks to trigger a liquidity crisis and sharp price increases, while 21.5% foresee a collapse of basic services. Some 77.1% warned that an accumulation of excess shekels in Palestinian banks would undermine confidence in the local currency and destabilise markets, and 62.3% described the surplus as a “very high” risk to the Palestinian economy.Growing Daily HardshipsThe survey found that 76.4% of respondents already struggle to cover basic expenses because of rising prices and cash shortages, and 56.3% report difficulties carrying out everyday banking transactions such as withdrawals and transfers. Some 78.5% believe the crisis will drive poverty and unemployment to dangerous new levels.Calls for International ActionNearly 48.2% of respondents urged international political pressure on Israel to resolve the crisis, while 27.5% called for a renegotiation of the Paris Protocol, which governs financial relations between the two sides.Survey MethodologyThe PCPO poll was conducted through random phone interviews using a computerised system, with an average respondent age of around 30, a margin of error of ±4.45% and a confidence level of 95%.Dr. Nabil Kukali said the results “paint a bleak picture of the Palestinian economy under Israeli pressure,” adding that the crisis is “not only financial but deeply political,” and calling for effective banking alternatives and urgent international intervention to prevent a collapse of the Palestinian financial system.