Is the Iran-Sanctions Playbook Coming for Israel? - with Mark Dubowitz

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Call Me Back - with Dan Senor 43 min 1 speaker 8 chapters transcribed
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What is the new UN settlement‑business blacklist and why does it matter?

Dan Senor 0:00
Quick note before we start, big things are coming to Arc Media. Somewhere in the small gaps of time between putting out three episodes each week, we've been secretly working on something we think all our listeners are going to be really excited about. We're announcing everything live on october fifth. If you want to be the first to hear about it, RSVP to our virtual announcement event. You can find the sign up link in the show notes. See ya there. You are listening to an art media podcast.
Mark Dubowitz 0:34
Israel has yet to experience what American financial warfare looks like. And I'm saying let's conduct a stress test on a computer before someone conducts it on the Israeli economy. What would happen if you designate a hypothetical major Israeli corporation? I mean, pick a major Israeli tech company, including one that you've mentioned, and then designate a bank. And then what happens to those correspondent banking relationships and dollar clearing and insurance? What happens to the foreign venture capital? Firms who say, you know what, incredible technology in Israel, but there are lots of good jurisdictions, and I don't want to take the risk. And then what happens to the shekel? Run that exercise. And maybe, I hope to God, we discover Israel is much more resilient than I'm warning.
Mark Dubowitz 1:12
And that would be excellent news. But again, national security planning isn't about necessarily proving the worst case scenario correctly. It's about discovering what are your vulnerabilities before your allies or your adversaries discover. Discover them for you.
Dan Senor 1:37
It's nine a.m. on Sunday, September twenty-seventh here in New York City. It's four PM on Sunday, September twenty-seventh in Israel, as Israelis celebrate the Sukkot holiday. Last week, Prime Minister Netanyahu stood at the UN General Assembly. Twenty-four hours later, the UN did something that got almost no attention outside of the Israeli press. It expanded its settlement business blacklist from 158 companies to 215 companies, including companies like Tanuva, a dairy products Israeli company headquarters. In Ramat Gun, listed on the Tel Aviv Stock Exchange, and which is the largest exporter and supplier of kosher dairy products around the world. Also companies like Electra, which is an Israeli construction company and dozens of others.
Dan Senor 2:28
It's not a sanction. It's not binding, but it is, as my next guest predicts, exactly how things start. Mark Dubowitz, a frequent guest on Call Me Back, runs FDD, the Foundation for Defense of Democracies, a Washington based think tank. Iran sanctions architecture is basically his life's work. He helped build the case for the quote maximum pressure campaign, what we call the E3 Snap Act, the SWIFT Cutoffs, the whole 30-year machine that isolated Tehran's economy before a single shot was fired. Now, FDD has published a report, the one we are going to discuss today, arguing that almost the exact same machine, the same designations, the same escalation logic could be Assembled against Israel, not by enemies, but by allies, or at least by quote-unquote neutral parties and neutral governments, by sovereign wealth funds in the West that manage trillions of dollars by the EU, stating that the reason has been Israel's conduct in Gaza and the West Bank.
Dan Senor 3:32
And now this is the part that should make Jerusalem very nervous. This same architecture could be. Built by Democrats, by mainstream Democrats, something to ponder on the eve of Democrats potentially taking majority control of one or both houses of Congress. So today's conversation, is this alarmism, or is it just describing what's already happening in slow motion? What did Iran's 30-year isolation teach us about how fast this can move once it starts? And if the man who helped design, Designed the playbook against Tehran is now warning it's going to be aimed at Jerusalem. What if anything can actually stop it? My conversation with Mark Dubowitz right after this short message. In the United States, if there's an emergency, you're dealing with several different systems.
Dan Senor 4:23
One organization runs the ambulances, another handles disaster relief, a third manages the blood supply.

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