The United Kingdom is expected to ban trade with Israeli settlements in the West Bank on Tuesday, a move that Prime Minister Andy Burnham discussed with US President Donald Trump on Monday. The decision, driven by Burnham’s Labour Party and Foreign Secretary Ed Miliband, aims to strengthen policy against settlement expansion following Israeli plans to tender 1,200 new homes in the E1 area of the West Bank. The sanctions will not include financial restrictions on individuals or companies. Burnham informed Trump of the plan during a phone call in which the two leaders also discussed a two-state solution and regional security concerns, including the reopening of the Strait of Hormuz and preventing Iran from acquiring nuclear weapons.
The move is anticipated to draw criticism from the US, with the White House expected to issue a statement opposing the sanctions. Israeli ministers are also likely to retaliate. Some Labour MPs have expressed concern that the trade ban could evolve into a broader boycott of Israeli goods, while over 140 Labour MPs have signed a letter supporting the sanctions. The Netherlands faced repercussions in August after announcing similar measures, being blocked from participating in the Gaza peace process.
Sanctions expert Tom Keatinge of the Royal United Services Institute (Rusi) suggests the new package could deter British banks from trading with Israel altogether, noting that “there’s no such thing as a smart sanction.” The announcement comes as Labour fights a by-election in Holborn & St Pancras. Miliband is also considering expanding human-rights sanctions to cover obstruction of aid to Gaza and formally endorsing the International Court of Justice’s 2024 opinion that Israel’s occupation of Palestinian territory is unlawful. The current status of the sanctions' impact on British financial institutions remains uncertain.
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