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UK bans trade with Israeli settlements in policy reset

The UK has imposed a ban on trade with Israeli settlements in occupied Palestinian territory as Foreign Secretary Ed Miliband promises a broader reset in relations with Israel.

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Adrian Cole
Political Correspondent
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Source: Al Jazeera Global News · View original source
Man in navy suit carrying a red folder walks past black railings outside a building.
Britain’s tougher stance prompts threats of retaliation from Israeli officials

The United Kingdom has imposed a ban on trade with Israeli settlements in occupied Palestinian territory, marking a sharper turn in its approach to Israel under the Labour government.

Foreign Secretary Ed Miliband has described the move as part of a “comprehensive reset” in relations. He has also pledged a wider set of measures in response to Israeli government policies, with possible further restrictions on arms sales.

The policy follows a deterioration in UK-Israel relations since Labour took office in 2024, after decades of close trade, defence and security cooperation. The UK recognised Palestine in 2025 and sanctioned Israeli ministers Bezalel Smotrich and Itamar Ben-Gvir, according to an Al Jazeera opinion article that forms the source of the account.

The source also reports a marked change in British rhetoric since Andy Burnham became prime minister. Israeli officials have accused Britain of anti-Semitism and threatened reciprocal action, while Smotrich has called for the expulsion of the British ambassador to Israel.

The precise legal scope and implementation of the trade ban were not specified in the material. The source says Israel’s settlement population exceeds 750,000 people across more than 140 formal settlements and more than 390 outposts and farms.

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