UK, Australia and Canada launch £4m peace fund for Israel-Palestine conflict

Britain, Australia and Canada have announced a joint peace fund aimed at supporting a two-state solution to the Israel-Palestinian conflict. The initiative was unveiled on Thursday and will provide £1m from each country, according to a statement from the UK foreign ministry. The fund is intended to back grassroots projects and humanitarian support linked to Palestinians, while also promoting dialogue between communities.

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The announcement said the money will go to new and existing local projects, with a particular focus on youth groups, civil society organisations and women. It also said the fund will support long-term peacebuilding efforts and help address what the ministry described as the root causes of conflict. British Foreign Secretary Yvette Cooper said peace, justice and security in the Middle East depend on a two-state solution, and that local organisations have a role in building trust across communities.

The move follows coordinated sanctions announced earlier this week by Britain, Australia, Canada, France, New Zealand and Norway against networks accused of financing and carrying out settler violence against Palestinians in the occupied West Bank. The statement linked the new fund to wider efforts to support humanitarian needs and to counter violence in the territory. It also said the initiative would support United States President Donald Trump's 20-point Gaza peace plan.

The announcement is significant because it shows three close Western partners using a financial and diplomatic tool to support a political outcome they say remains the only viable route to lasting peace. The countries involved have already recognised the State of Palestine alongside the State of Israel, according to the statement. That places the fund within a broader diplomatic push that combines sanctions, humanitarian support and backing for a negotiated settlement.

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The foreign ministry said the fund will initially total £3m, or about $4.02m, and will seek to attract additional donors once it is operational. The announcement came ahead of a meeting in Britain between Cooper and her Australian and Canadian counterparts, Penny Wong and Anita Anand. The timing suggests the three governments are trying to coordinate their approach more closely as violence and settlement expansion continue to shape the conflict.

What remains unclear is how quickly the fund will begin operating, which projects will be selected first and how much additional money it may attract. It is also not yet clear how the initiative will interact with other diplomatic efforts on Gaza and the wider conflict. The next developments to watch are the first funding decisions, any further joint statements from the three governments and whether other donors join the scheme.

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