Norway and US Resolve Tensions Over Caterpillar Divestment

Diplomatic tensions between the United States and Norway over a significant divestment decision by the latter's wealth fund on U.S. construction giant Caterpillar appear to be easing. Norwegian Foreign Minister Espen Barth Eide confirmed the development, signaling a potential resolution to the months-long disagreement.

Norway's $2 trillion sovereign fund, the largest of its kind globally, decided to divest from Caterpillar in August. The decision was based on ethical concerns related to the company's supply of bulldozers to Israel, which have reportedly been used in ways that violate international humanitarian law. This decision drew ire from the U.S., with influential figures calling for a retaliatory response.

In response, Norway has clarified that the divestment decision was independent of governmental influence, being controlled by Norges Bank and advised by an ethics watchdog. These measures ensure that political motives do not interfere with the fund's operational choices. As of now, Caterpillar and the Israeli embassy have yet to comment substantively on the matter.

(With inputs from agencies.)