Thomas Palley: The best explanation of the Epstein saga – an Israeli asset who helped twist regional relations and the peace process against Palestine

Corporate media has persistently refrained from connecting the dots and surfacing this clear pattern of Epsteins services for Israel, to the extent of even obscuring it

Thomas Palley is an American economist who has served as the chief economist for the United States-China Economic and Security Review Commission

 

Jeffrey Epstein on his famous private jet wearing an IDF shirt.

A recent interview with Craig Mokhiber, an American former Director of the Office of the UN High Commissioner for Human Rights, provides by far the most compelling explanation of the Jeffrey Epstein saga I have heard.

According to the interview, Epstein was an Israeli asset who helped significantly twist regional Middle East relations and the peace process against Palestine.

Having circulated as rumor for a long time, the “Israeli asset” story is now being clearly confirmed by the 3.5 million Epstein file pages (still only partial) released on January 30, 2026.

If you find it hard to believe, recall that Israel’s Mossad is an extraordinarily sophisticated and accomplished secret service, as evidenced by the 2024 deadly sabotage of Hezbollah pagers and walkie-talkies.

Epstein’s interventions on behalf of Israel worked in two ways. First, he twisted the peace process by seducing powerful US and UN actors, who then bought into overlooking persistent Israeli violence and creeping West Bank colonization in the name of keeping the peace process alive. Second, he helped twist regional relations against Palestine by engaging and entangling elite Arab business interests, who then bought into supporting the Abraham Accords. Those accords normalized Arab – Israeli relations, thereby pushing the Palestinian conflict off stage and relegating the rights of Palestinians.

As regards the “Israeli asset” connection, the files show Ehud Barak had a substantive ongoing relationship with Epstein. Barak is a former top ranking Israeli general, former Defence Minister, and former Prime Minister.

As regards the peace process, the files show Epstein had a substantive relationship with the husband – wife Norwegian diplomats Terje Rod-Larsen and Mona Juul, to whom he gave significant financial favors. They were pivotal figures in the Oslo Peace Process. Rod-Larsen has held many influential positions, including being UN Under-Secretary General and UN Special Coordinator for the Middle East Peace Process from 1999-2004. Epstein also had a relationship with President Bill Clinton who was central to establishing the Oslo Peace Accords. The Clinton relationship appears to have involved party treats.

As regards the Abraham Accords, Epstein had a long-standing active relationship with United Arab Emirates (UAE) businessman Sultan Ahmed bin Sulayem. Sulayem heads DP World, one of the world’s largeset operators of container ports and terminals. Epstein facilitated large military and defence industry investment contracts between Israel and the UAE. Those deals were likely enabled by his “Israeli asset” connections, and they paved the way for the UAE to be the first Arab country signatory of the Abraham Accords.

More generally, the stash of kompromat Epstein accumulated must have been very useful for blackmail, helping persuade many to lean in favor of Israel and its interests.

As regards Epstein’s finances, he had a close relationship with Leslie Wexner, the US billionaire businessman. Wexner is a huge supporter of Israel, and he has endowed the Leadership Initiative for Israelis which aims to deepen US – Israeli leadership ties. Epstein also had long-standing financial relations with Leon Black, the US multi-billionaire. Black has been a long-standing major donor to Israel and Zionist causes.

As for Epstein’s own politics, he was a strong supporter of Israel and Zionist causes. He made large donations to both Friends of the Israel Defense Forces (FIDF) and the West Bank settlement-building organization the Jewish National Fund (JNF).

The mainstream media has persistently refrained from connecting the dots and surfacing this clear pattern, to the extent of even obscuring it. Initially, it treated the Epstein saga exclusively as an issue of “personal perversion” involving sex-trafficking, pedophilia, and elite immorality. Since then, it has also sought to paint Epstein as a Russian agent.

The pedophilia – elite immorality story is undeniably true, with the entitled immorality of elites being the doorway whereby Epstein accessed influence. The Russian agent accusation is a Western media fabrication. Both have been used to obscure the deeper story. That deeper story further explains both the means and motive for Epstein’s operations, and it fits with his deeply held Zionist beliefs.

Lastly, connecting the dots adds a new suspect in the Jeffrey Epstein “Whodunit” murder mystery. Epstein was considering cooperating with federal prosecutors. Israel would have had the motive and means (easily at hand in New York City) to make sure that did not happen.



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