06:27 AM EDT, 09/04/2025 (MT Newswires) -- The divestment from Caterpillar ( CAT ) of Norway's $2 trillion sovereign wealth fund has troubled the US administration, media outlets reported Thursday.

The reports, quoting a US State Department spokesperson, said the move by the wealth fund seemed to be based on unfounded claims against Caterpillar ( CAT ) and the Israeli government. Washington is in direct talks with the Norwegian government over the issue, the report added.

The Norges Bank Investment Management, which handles various investments for Norway, has said that its Council on Ethics recommended the exclusion of Caterpillar ( CAT ) from the Government Pension Fund Global due to an unacceptable risk that the company contributes to serious violations of individuals' rights in situations of war or conflict.

According to the reports, Caterpillar's ( CAT ) products are being used by Israeli authorities in the destruction of Palestinian property, as well as other violations of international humanitarian law.

Norges Bank did not immediately respond to MT Newswires' request for comment.