Has anyone ever actually been prosecuted under this statute? It seems to me I ought to be free to do business with whomever I please (excepting members of "protected" minorities /sarcasm).
Boycotting Israel is de facto agreement with the ongoing Arab boycott of Israel. The deed itself is a violation of the law, irrespective of intent.
"It seems to me I ought to be free to do business with whomever I please (excepting members of 'protected' minorities /sarcasm)."
Yup, there's plenty of leftists who feel that way about Cuba, too; you and they should get together and petition Congress to redress your grievances. Until then, the law says that private citizens aren't allowed to conduct their own personal foreign policy initiatives (unless they're named Jesse Jackson, which is a separate issue).