UK-Israeli relations deteriorate after settlement trade restrictions

Britain and 11 other countries have imposed trade and related restrictions targeting Israeli settlements in the occupied West Bank, marking a sharp deterioration in UK-Israeli relations. Israel responded by closing the UK consulate in East Jerusalem and removing British representatives from an international body coordinating relief and stabilisation efforts in Gaza.

The restrictions cover goods produced in settlements, as well as companies involved in settlement construction, infrastructure, finance or marketing. They also include restrictions on arms sales that materially contribute to the occupation. The UK says the measures target settlement expansion and the occupation, rather than Israel or its people.

Foreign Secretary Ed Miliband said Britain’s economic relationships should reflect its acceptance of a 2024 International Court of Justice ruling that the occupation is unlawful. He accused the Israeli government of turning a blind eye to what he called “settler terrorism” and “ethnic cleansing” in parts of the West Bank.

The policy represents a departure from the approach taken by Western governments, which have generally regarded settlements in occupied Palestinian territory as illegal but stopped short of banning settlement products. While settlement goods account for a small share of Israel’s exports, their separate treatment carries substantial political symbolism.

Palestinian officials welcomed the measures but called for further action to halt settlement activity. The restrictions are not presented as a total boycott of Israel, and their effect on settlement expansion and wider bilateral relations remains unclear.

The move also places Britain and its partners in opposition to Israel’s principal international backer, the United States. The prospects for a viable Palestinian state remain poor, while Washington retains the greatest potential influence over Israel’s settlement policy.