US and Israel in war of words over Kerry boycott warning

He told his cabinet this Sunday that Mr Kerry’s statement would encourage the Palestinians “to adhere to their intransigent positions and thus push peace further away.”

He said: “Attempts to impose a boycott on the state of Israel are immoral and unjust.”

Israel’s Economy Minister Naftali Bennett joined Mr Netanyahu in the attack on Mr Kerry, saying the US Secretary of State should be supporting Israel rather than encouraging boycotts.

“Let us make it clear to all those giving advice a nation has not been born including us that will give up its land because of economic threats,” he said.

PGGM, the second-largest pension fund in Holland, recently said it would divest its holdings in Israeli banks, citing concerns over their work in the settlements.

The largest Dutch pension fund, ABP, is also considering similar steps and has asked Israeli banks for clarifications over their operations in the West Bank.