Core Points - The Norwegian Sovereign Wealth Fund, known as the "Oil Fund," is the largest wealth fund globally, with a size of $1.9 trillion, primarily funded by Norway's energy export revenues [1] - The fund announced a significant decision to adjust its investments in Israel due to the deteriorating situation in the West Bank and Gaza, necessitating enhanced due diligence on companies operating in conflict-prone areas [1][3] - The fund plans to divest from 11 Israeli companies that are not included in the Norwegian Ministry of Finance's stock benchmark index, citing unacceptable risks associated with their operations in the West Bank [1][3] - Future investments in Israel will be limited to companies that comply with the stock benchmark index, and all investments in Israeli companies managed by external managers will be transitioned to internal management [3] - The Norwegian Ministry of Finance has requested a comprehensive review of investments in Israeli companies, emphasizing adherence to ethical guidelines that prohibit investments in companies contributing to violations of international law [4] - The fund has previously divested from Israeli energy and telecommunications companies for ethical reasons and is currently reviewing its holdings in five banks [4] - Recent reports indicated that the fund increased its stake in a company producing parts for Israeli fighter jet engines amid ongoing conflicts, prompting scrutiny from the Norwegian Prime Minister [4][5] - Another Norwegian pension fund, KLP, also excluded an Israeli company from its investment list due to its involvement in supplying components for military drones used in the Gaza conflict, reflecting a broader trend of ethical investment considerations among major institutions [5]