UK and allies prepare sanctions over West Bank E1 settlement plans
The Foreign Office is set to announce measures targeting companies involved in the controversial development, which critics say would fragment the territory and undermine the two-state solution.
The UK Foreign Office, coordinating with nine Western nations including France and Australia, is preparing to announce a package of sanctions against Israel this week. The measures are designed to deter companies from participating in the E1 settlement development in the West Bank, a project involving the construction of more than 3,000 homes between Jerusalem and Ma’ale Adumim.
The development has drawn sharp criticism for its potential to split the West Bank into two disconnected sections, a move widely viewed as a breach of international law that would render a contiguous Palestinian state and the two-state solution impossible. Tenders for the project were opened earlier this month, prompting urgent diplomatic intervention from London and its allies.
On 22 May, the nine countries issued a joint statement warning businesses against bidding for E1 tenders or other settlement developments. The statement highlighted the legal and reputational risks for companies involved, noting that participation could constitute serious breaches of international law. The UK package is expected to specify sanctions for British firms involved in the development and impose new restrictions on entities supporting settler violence.
Domestic political pressure is also intensifying, with 137 Labour MPs signing a letter to Foreign Secretary Yvette Cooper urging urgent and concrete action. The letter calls for an end to trade with illegal settlements, citing escalating violations against Palestinians in the occupied West Bank and East Jerusalem. Signatories include former health secretary Wes Streeting, who recently described feeling he was "hitting up against a brick wall" when raising concerns about Gaza within government.
Melanie Ward, the chief executive of Medical Aid for Palestinians and an MP who organised the letter, argued that banning settlement trade would send a clear message that such settlements have no viable economic future. The MPs pointed to precedents in UK policy, such as restrictions on trade with illegally occupied lands like Crimea, as evidence that primary legislation may not be required to enact similar bans.
The letter also references the displacement of the Khan al-Ahmar Bedouin community, which the UN committee on the exercise of the inalienable rights of the Palestinian people condemned as a potential war crime. Israeli Finance Minister Bezalel Smotrich has defended the E1 plan as an act of strengthening sovereignty, stating it will "bury the idea of a Palestinian state."
Meanwhile, the EU is reviewing its decision not to sanction Smotrich and Security Minister Itamar Ben Gvir last month, with the Czech Republic reportedly holding out. In France, Foreign Minister Jean-Noël Barrot has pushed for sanctions on entities providing extremist settlers with the means to displace Palestinians. Amid these diplomatic efforts, ceasefire negotiations in Cairo continue, with Hamas insisting that ending Israeli attacks in Gaza is essential for any progress.