BRUSSELS (Dispatches) – Western officials have warned of an “economic catastrophe” in the occupied West Bank over the Zionist regime’s decision to cut off Palestinian banks. The warning came a day after Israeli finance minister Bezalel Smotrich threatened to isolate Palestinian banks by not extending guarantees to Israeli banks that deal with them. The guarantees allow payments for vital services and salaries tied to the Palestinian Authority, and facilitate the import of essentials such as food, water and electricity into the occupied Palestinian territories. According to three Western officials, the Palestinian economy would effectively stop over time, if the waivers, which are set to expire on July 1, were not renewed.