11:10 AM EDT, 09/25/2025 (MT Newswires) -- Tensions with the US over Norway's sovereign wealth fund's divestment from Caterpillar ( CAT ) appear to be easing, Reuters reported Thursday, citing Norway's Foreign Minister Espen Barth Eide.

The $2 trillion fund decided in August to divest from Caterpillar ( CAT ), citing the company's supply of bulldozers used by Israeli authorities in Gaza and the West Bank, the media outlet reported, citing the fund's ethics watchdog.

The US State Department expressed concern in September, and Republican Senator Lindsey Graham suggested tariffs and visa restrictions in retaliation.

Norway clarified that the decision was made by the central bank's board, not the government, following ethical guidelines set by parliament, according to Reuters.

The watchdog reportedly said Caterpillar's ( CAT ) equipment was used for "widespread unlawful destruction of Palestinian property" and that the company had not taken steps to prevent such use.

Caterpillar ( CAT ), Norges Bank Investment Management, Norges Bank, Council on Ethics for the Government Pension Fund Global and the US Department of State did not immediately respond to requests for a comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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