Barclays Mulls Action Amid Controversy Over Israeli Government Bond Auction

Barclays also stated that it is "preparing a response" to Israel's latest request for bids on its upcoming bond sale, with the response expected next week.

Barclays has considered withdrawing from future Israeli government bond auctions amid growing pressure from pro-Palestinian activists, according to a report by the Financial Times, which cited sources familiar with the matter.

Despite these plans, Barclays (BARC.L) informed Israeli officials that it intends to continue operating as a primary dealer, working alongside other international banks such as Goldman Sachs, JPMorgan Chase, and Deutsche Bank, according to the report.

“We appreciate the bank’s statement affirming its continued commitment to the State of Israel,” said Yali Rothenberg, Israel’s accountant general, as quoted in the report.

Barclays also stated that it is “preparing a response” to Israel’s latest request for bids on its upcoming bond sale, with the response expected next week.

In May, Barclays clarified that it does not invest its own funds in companies supplying weapons used by Israel in Gaza. Instead, the bank trades shares of listed companies on behalf of clients. This clarification followed an incident in which one of its London branches was targeted by pro-Palestinian activists.

Barclays has faced criticism for providing financial services to defense firms that produce equipment used by the Israeli Defense Force. Similarly, activists disrupted Lloyds Banking Group’s (LLOY.L) annual shareholder meeting in May, protesting against its alleged provision of financial services to defense firms linked to violence in the Middle East.