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U.S. designates Palestine Action as terrorist group, imposes sanctions

Washington targets far-left groups with new sanctions as Trump administration expands counterterrorism focus. Italy-based entity and Masar Badil also sanctioned.

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Sophie Laurent · FX & Rates Desk · 29 Aug 2026 · 02:40 · 2 min read
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U.S. designates Palestine Action as terrorist group, imposes sanctions

The United States designated the activist group Palestine Action as a terrorist organization on Wednesday, marking a shift in Washington’s counterterrorism strategy toward far-left extremism. The move, announced by Treasury Secretary Scott Bessent, was accompanied by sanctions on an Italy-based entity accused of providing digital infrastructure to groups including antifa and on the transnational network Masar Badil, which the U.S. said operates as a front for the Popular Front for the Liberation of Palestine.

The designation follows a broader policy shift under the Trump administration, which has prioritized countering left-wing groups in international counterterrorism efforts. Last month, U.S. Secretary of State Marco Rubio told officials from more than 60 countries that Washington would refocus resources toward combating "far-left terror." The administration’s stance has drawn criticism from Democrats, who argue the approach politicizes counterterrorism and diverts attention from other extremist threats.

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Sanctions were imposed on an unnamed Italy-based entity for supplying digital tools and services to antifa and allied groups. The Treasury also targeted Masar Badil, describing it as a transnational network linked to the Popular Front for the Liberation of Palestine, a group already designated as a Foreign Terrorist Organization by the U.S.

The action comes amid heightened scrutiny of Palestine Action, which has staged high-profile protests targeting Israel-linked defense firms, particularly Elbit Systems, in Britain. Britain banned the group as a terrorist organization in 2025, and the UK’s Supreme Court is now reviewing a lower court’s ruling that upheld the ban. Palestine Action co-founder Huda Ammori condemned the U.S. move, stating the group’s activities were aimed at disrupting what it describes as the "Israeli war machine."

Bessent framed the sanctions as a warning to far-left extremists and their supporters, declaring that the U.S. would deploy its economic tools to dismantle such groups. The Treasury’s actions signal an expansion of Washington’s counterterrorism toolkit beyond traditional Islamist networks to include domestic and international far-left movements.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Sophie Laurent
FX & Rates Desk

Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.

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