A Norwegian diplomat who was a key architect of the 1993 Oslo accords faces corruption and racketeering charges after new documents reveal he was deeply involved in sex offender and financier Jeffrey Epstein’s inner circle.
Terje Rod-Larsen, a central figure in the Middle East “peace process” of the 1990s, has been implicated in newly released U.S. Justice Department files and a Norwegian media investigation that exposed ties to illegal lending, visa fraud for prostitutes and benefit provisions in Epstein’s will worth millions of dollars.
The revelations shocked diplomatic circles and led to Rod Larsen’s wife, Mona Joul – a central figure in the Oslo negotiations – resigning as Norway’s ambassador to Jordan and Iraq this month. Her security clearance was also revoked.
Palestinian leaders are now questioning whether Oslo’s framework agreement on a two-state solution was brokered by mediators vulnerable to elite blackmail and foreign intelligence pressure.
This plan, known to the Western world at the time, was quashed by successive Israeli governments over the next 30 years, and now far-right leaders are openly pushing for annexation of the occupied West Bank.
An investigation by Norwegian broadcaster NRK and newspaper Dagens Næringsliv (DN) details how Rod-Larsen used his position as chairman of the International Peace Institute (IPI) think tank in New York to launder the reputations of Epstein associates.
According to the filing, Rod-Larsen wrote formal letters of recommendation to U.S. authorities to secure visas for young Russian women in Epstein’s orbit, claiming they had “extraordinary abilities” suited to research roles.
In reality, these women were models with no academic background, and it was often alleged that they had been trafficked and abused by financiers. One victim told NRK that she believed Epstein had sent her to the Lord-Larsen Institute to “manipulate” her, while another described how a diplomat facilitated her visa after Epstein’s secretary requested it directly.
The transactional nature of the relationship was evident. According to the documents, Epstein lent Rod-Larsen $130,000 in 2013. More damning, according to the report, Epstein’s last will included a provision leaving $5 million to each of Rod-Larsen’s two children ($10 million total).
‘Oslo was a trap’
For Palestinians living in the reality of the failed Rod-Larsen agreement, the scandal provides a shocking account of a “peace process” that many believe was rigged.
Mustafa Barghouti, secretary-general of the Palestinian National Initiative party, told Al Jazeera he was “not surprised at all” by the corruption allegations.
“We never felt comfortable with this guy from the beginning,” Barghouti said. “Oslo was a trap, and I have no doubt that Terje Rod-Larsen was under effective Israeli influence all along.”
Barghouti argued that revelations of millions of dollars potentially flowing from Mossad-linked figures such as Epstein to the Rod-Larsen family showed corruption was “directed to serve the interests of Israel against the interests of the Palestinian people.”
The relationship between disgraced Epstein and Israel has come into sharp focus following the release of millions of documents.
The documents revealed more details about Epstein’s interactions with global elites, including former Israeli Prime Minister Ehud Barak. But they also document connections with members of Mossad, Israel’s foreign intelligence agency, as well as funding for Israeli groups, including Friends of the IDF (the Israeli army) and the settler organization Jewish National Fund.
disappeared archive
The scandal has renewed calls in Norway for the release of “private archives” kept by Rod Larson relating to secret 1993 negotiations.
A media investigation found that documents from a critical period between January and September 1993 were missing from the Foreign Office’s official archives. Critics argue that these missing files could obscure the extent to which personal influence or intimidation played a role in concessions extracted from the Palestinian leadership during secret talks.
rule by intimidation
Analysts argue that the Rod-Larsen case is a symptom of a broader global governance system driven by systematic intimidation and intelligence operations.
Gaza-based political analyst Wissam Afifa drew parallels between the exploitation of minors on Epstein Island and the geopolitical treatment of Palestinians.
“As Palestinians, we were treated as minors and as having no right to demand our rights,” Afifa said. “Today we discover that large parts of the international system are essentially ‘Epstein Islands.’”
Afifa suggested that the international community’s “silence” regarding the current genocidal war against Gaza could be linked to similar networks of influence and extortion.
“The world was managed in a dark room on Epstein’s island,” Afifa added. “We are victims of the network of influence Epstein managed with politicians, leaders and the nation.”
As Norwegian authorities, including Okorim, the economic crimes unit, begin investigating the scandal, the legacy of the diplomat who once shook hands on the White House lawn is in tatters, casting a long shadow over the deeply flawed history of peacemaking in the Middle East.
