Foreign Secretary Ed Miliband announced new sanctions on West Bank settlements on September 8, 2026, targeting imports and companies involved in settlement construction and sales. The measures, coordinated with France and Canada, were met with immediate threats of reprisal from the United States and Israel.
Miliband characterized the settlement activity as 'ethnic cleansing' and 'rampant terrorism,' stating that the UK would no longer be a bystander to further suffering or the destruction of a two-state solution. He condemned the October 7 Hamas attacks but argued that Israel's right to self-defense did not justify actions in Gaza, suggesting independent reports indicated potential war crimes.
The sanctions come as Labour faces pressure to toughen its stance on Israeli settlements, particularly with Palestine expected to be a significant issue in an upcoming by-election in Keir Starmer's Holborn & St Pancras seat. The UK government informed U.S. President Donald Trump of the plans in a call the previous night.
U.S. and Israeli Reactions
U.S. Ambassador to Israel Mike Huckabee accused the UK of 'Jew hate' and 'discrimination,' warning of unspecified implications for Britain, including potential disruptions to pharmaceutical imports from Israel and repercussions for British businesses operating in U.S. states with anti-boycott laws. Florida Congressman Randy Fine stated that a law he previously passed would ban British companies, forced to comply with the sanctions, from doing business with any state or local government in Florida, a move he claimed could cost Britain billions.
In response to the sanctions, Israel's hardline National Security Minister Itamar Ben-Gvir suggested Israel should recognize the Falkland Islands as Argentine territory and impose sanctions on Great Britain. This statement echoed recent assertions by Argentine President Javier Milei regarding the disputed islands. Israel's Finance Minister Bezalel Smotrich called for the expulsion of the British ambassador, stating that the "British Mandate in the Land of Israel is over."
Israeli President Isaac Herzog advised Britain to focus on dialogue rather than sanctions, warning that the move could be a "grave miscalculation."
Settlement Expansion and International Law
Labour has argued that the expansion of Israeli settlements, particularly in areas like E1 east of Jerusalem, threatens the viability of a two-state solution by effectively dividing the West Bank. The party highlighted that around 160 settlements have been built since Israel's occupation of the West Bank in 1967, now housing approximately 770,000 residents. Miliband reiterated that the sanctions are specifically targeted at settlement expansion, which he stated is illegal under international law, and not intended as a broad boycott of all Israeli goods.
Shadow Foreign Secretary Tom Tugendhat expressed concern that the sanctions could jeopardize security cooperation with Israel, urging ministers to prioritize national interests and security. He noted that Israel is a crucial intelligence ally for Britain.
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