Israel warns of retaliation if UK moves on West Bank settlement sanctions

Israel warns of retaliation if UK moves on West Bank settlement sanctions

Israel has warned it will retaliate if the United Kingdom imposes sanctions over the possible expansion of settlements in the occupied West Bank. The warning came after the new British foreign secretary said the government would carry out a "comprehensive reset" of policy on Israel in the coming weeks. The dispute centres on how London may respond to companies that finance, build or advertise new settlements.

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Foreign Minister Gideon Saar said Israel would act against Britain if sanctions are introduced, telling a Hebrew-language news website that any such move would be a mistake. His comments followed an address to Parliament by Ed Miliband, who said the government would examine ways to stop UK companies from "financing, constructing or advertising new settlements" in the occupied West Bank. The British government has not yet announced sanctions, but the language marks a sharper policy review than before.

The immediate trigger is Israel's recent tender process for about 1,200 settlement homes in the so-called E1 area, east of Jerusalem. The plans have drawn widespread international condemnation because they would effectively divide the West Bank in two and isolate East Jerusalem. Miliband said the project is illegal under international law and described it as crossing a red line because it cuts through the heart of the West Bank and risks making a Palestinian state unviable.

The issue matters because the E1 area has long been seen as strategically sensitive in the wider Israeli-Palestinian conflict. Any large-scale building there is viewed by critics as making a future two-state solution harder to achieve. That proposal, backed internationally, envisages an independent Palestinian state in the West Bank and Gaza with East Jerusalem as its capital, existing alongside Israel.

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The latest exchange also reflects the broader diplomatic strain around settlement expansion, which has repeatedly drawn criticism from foreign governments and international bodies. The supporting material says all settlements are illegal under international law, while also noting that Israel rejects a two-state solution. The Palestinian Authority supports that framework, but Hamas does not because it opposes the existence of Israel.

What happens next will depend on whether the UK turns its policy review into concrete measures and how Israel responds if it does. It remains unclear what form any British sanctions might take, or whether the two sides can avoid a further escalation in rhetoric. The coming weeks are likely to show whether the dispute stays at the level of warnings or becomes a formal diplomatic confrontation.

360LiveNews 360LiveNews | 01 Sep 2026 21:05 LONDON
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