All of it looks like this or just the one branch? If the whole tree it seems likely to be a soil minerals problem. As in either too much (most likely) or not enough of something. Due to either the existing nature of the soil or minerals in the irrigation water.

But if you are in the US try your nearest USDA Cooperative Extension Service office for assistance with diagnosis and treatment.

Thank you! If it were only the one branch I'd have chopped it off. It's all over the tree, i.e. most branches. The damage is particularly bad at the top, which looks sort of scorched.

I'm in Israel. I sent photos to the nursery, and the reply was: wait till spring and see if new growth is scorched-looking. I suggested it might be fungal, but they didn't think so.

Three meters from this new little tree I have two very healthy honey myrtles planted 5 years ago. They are thriving.

Most water here is desalinated. It gets fluoridated. I don't know what else is in it. No minerals to the best of my knowledge. Some people complain the government isn't restoring magnesium to the water, and that this is damaging to their health.

What are your thoughts? Could it be fungal after all?

why are you avoiding a pic of the whole tree??

if memory serves.. arent you in isreal? .. if so.. why are you not providing said info ...

you must be somewhere where it isnt winter.. since you are expecting lush green growth in my winter ...

it seems you are leaving out some of the most important facts.. and pix...

ken

Ken, please scroll up and read my reply to Embothrium. It's just above your post.