Though voices are getting louder inside and outside Israel about the threat of economic boycotts for its continued occupation of Palestinian territories, there seems little prospect of it facing measures with real bite.

With a number of European firms already withdrawing some funds, Israeli Finance Minister Yair Lapid has warned that every household in Israel will feel the pinch if ongoing peace talks with the Palestinians collapse.

US Secretary of State John Kerry has also warned that Israel risks a financial hit if it is blamed for the failure, but investors and diplomats say they are unconvinced.

It is true that some foreign firms have started to shun Israeli business concerns operating in East Jerusalem and the West Bank – land seized in the 1967 war –  and the European Union is increasingly angered by relentless Jewish settlement expansion.

But the bulk of Israeli business is clustered on the Mediterranean coast, a world away from the roadblocks and watchtowers of the West Bank, and not even the Palestinian leadership is demanding a total economic boycott.

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