The Ethics Council of the Norwegian Sovereign Wealth Fund concluded that Caterpillar products, such as bulldozers, are used by Israeli authorities “to commit widespread and systematic violations of international humanitarian law.” It added that the violations include “the unlawful widespread destruction of Palestinian property.”

The administration of US President Donald Trump said on Wednesday it was “very disturbed” by the Norwegian Sovereign Wealth Fund’s exit from the American construction equipment group Caterpillar, adding that Washington is in direct contact with the Norwegian government on the matter.

The Norwegian Sovereign Wealth Fund, managed by the Norwegian central bank, is the largest in the world with investments worth two trillion dollars.

Last week, it announced it was withdrawing its investments from Caterpillar for ethical reasons due to the use of the company’s products by Israeli authorities in Gaza and the occupied West Bank.

The Ethics Council said its assessment concluded that Caterpillar products like bulldozers are used by Israeli authorities “to commit widespread and systematic violations of international humanitarian law.”

It added that the violations include “the unlawful widespread destruction of Palestinian property.”

The fund noted that Caterpillar “has not taken any measures to prevent the use of its products in this way.”

A US State Department spokesperson said, “We are very disturbed by the Norwegian Sovereign Wealth Fund’s decision, which appears to be based on unfounded allegations against Caterpillar and the Israeli government.”

He added, “We are in direct contact with the Norwegian government on this matter.”

Republican Senator Lindsey Graham, an ally of Trump, suggested that Washington impose tariffs on Norwegian goods and visa restrictions.

Companies face protests over ties with Israel amid escalating humanitarian crisis in Gaza due to the Israeli military offensive, and images of starving Palestinians, including children, have sparked global outrage.