Britain announced sanctions Tuesday on Israeli West Bank settlements, drawing furious responses from Jerusalem and a warning from the Trump administration that the move could carry serious consequences for British business.
Britain announced sweeping sanctions Tuesday against Israeli settlements in the West Bank, a dramatic shift that puts London on a collision course with both Jerusalem and the Trump administration. Foreign Secretary Ed Miliband unveiled the package in Parliament as part of what Prime Minister Andy Burnham's government calls a reset of UK-Israel relations.
The measures ban imports of goods produced in Israeli settlements, expand sanctions on individual settlers, and target companies and people tied to settlement construction, infrastructure, finance, and real estate. Miliband said Britain was acting with France and Canada to prevent what he called the destruction of the two-state solution.
The announcement lands as Israel prepares for national elections next month and as Prime Minister Benjamin Netanyahu's coalition pushes ahead with the E1 settlement project, a sprawling development plan that critics say would carve the West Bank in two and sever East Jerusalem from the rest of the territory. In late August, Israel's Housing Ministry invited bids on more than 1,200 new E1 housing units, adding to the roughly 3,400 already approved.
Israeli leaders reacted with fury. President Isaac Herzog called the sanctions a grave error in judgment and an interference in the democratic elections of a sovereign nation. Foreign Minister Gideon Sa'ar warned that Israel has tools to retaliate and would use them if Britain acts against the Jewish state.
Finance Minister Bezalel Smotrich went further, demanding the British ambassador be expelled and accusing London of running an antisemitic government. National Security Minister Itamar Ben-Gvir suggested Israel should retaliate by recognizing Argentine claims to the Falkland Islands, which Britain governs.
U.S. Ambassador to Israel Mike Huckabee, who has strongly defended Israeli settlements, did not hide Washington's displeasure. He told the BBC before the announcement that there would unquestionably be a reaction and warned the move could carry a huge impact on British businesses.
Huckabee described the sanctions as irrational and discriminatory, saying they single out the Israeli government and the Jewish people. His comments reflect the stark divide between the Burnham government's approach and the Trump administration's steadfast support for Israel, which has treated the Jewish state as one of America's closest allies.
The tension reached the highest levels on Monday, when Burnham and President Donald Trump discussed the Middle East by phone. The White House has consistently backed Israel's right to defend itself and has resisted international pressure campaigns aimed at delegitimizing the Jewish state.
The practical damage may be limited. Annual UK-Israel trade runs to roughly $8 billion, and only a tiny fraction of that comes from West Bank settlement production. Britain's top exports to Israel are medicines and pharmaceuticals, while its top imports are fruits and vegetables.
Still, the symbolism is significant. Britain had already sanctioned Smotrich and Ben-Gvir last year over what London described as incitement to violence, and Miliband summoned Israel's charge d'affaires in London last month over the E1 expansion. He had called the project an unacceptable and destructive act that crosses a red line.
More than 500,000 Israelis live in West Bank settlements among some three million Palestinians. Israel captured the territory in the 1967 war, and the international community broadly considers the settlements illegal under international law, a view the United States has rejected in recent years.
The coming days will test how far Britain is willing to push and how sharply Israel and the United States push back. Israeli officials have already signaled retaliation is coming, and Washington has made clear it will not simply stand by while a key ally is targeted.
For the Trump administration, the episode is another case of European governments choosing symbolic gestures over the reality of a dangerous region. Whether London's reset survives contact with Israeli and American pressure is now the question, and the answer will shape UK-Israel ties for years.
Britain announced sanctions Tuesday on Israeli West Bank settlements, drawing furious responses from Jerusalem and a warning from the Trump administration that the move could carry serious consequences for British business.
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