Former British Prime Minister Tony Blair and the heads of the International Monetary Fund and World Bank urged Israel's prime minister to ease Israeli pressure on the Palestinian banking system.

"We understand and appreciate Israel's legitimate security concerns," said Mr. Blair, who is now a Mideast negotiator, IMF Managing Director Dominique Strauss-Kahn and World Bank President Robert Zoellick in a letter to Israeli Prime Minister Ehud Olmert. But the three argued that Israel policies "undermine the viability of the Palestinian...