Israel's Knesset Defies US Warnings, Passes Landmark Judicial Overhaul Bill

Israel's Knesset has adopted the first element of the government's controversial judicial overhaul plan, known as the "Reasonableness Clause," despite protests and warnings from the US. The clause prevents Supreme Court oversight over government decisions, including the nomination of ministers. The vote, which passed with a narrow majority, led to a sharp drop in the Tel Aviv stock market and a weakened shekel. President Joe Biden called on Israeli leaders to halt the judicial overhaul, expressing concern about its potential implications. Protests have continued outside the Knesset, and strikes are being threatened by the public sector union. The judicial overhaul has also led to Israeli startups taking steps to protect their finances due to a lack of foreign direct investment. Prime Minister Benjamin Netanyahu defended the vote, claiming it strengthens the democratic process.