Amid public outcry, Norway's $1.9 trillion sovereign wealth fund has divested its investments in 11 Israeli companies and is terminating all contracts with Israeli external managers.

Norway's Central Bank Investment Management has faced increasing pressure in recent months, reflecting domestic concerns about the suffering of Palestinians in the Gaza Strip. The fund said in a statement that it held shares in approximately 61 Israeli companies as of June.

"These measures are being taken in the face of a very exceptional conflict situation," said CEO Nicolai Tangen, describing the events in Gaza as "a serious humanitarian crisis." This follows a review by the Norwegian Ministry of Finance of the fund's holdings in Israel.

Norway's Central Bank Investment Management primarily tracks indices but also maintains some active management. The fund said it will end all active management in Israel. Its total holdings in Israel accounted for 0.1% of the fund, or approximately $2 billion before the divestment. The fund has sold all of its shares in 11 companies not included in the index and will continue to invest in some, but not all, of the Israeli companies included in the index.

In a recent poll, 78% of respondents said they wanted the fund to exclude companies that fail to respect human rights. The fund has already excluded 11 companies for their activities in the West Bank.

Norway recognized the establishment of a Palestinian state in May last year and has repeatedly called on Israel to provide more humanitarian aid to Gaza.