The UK banned trade in goods from Israeli settlements, and Israel said it would retaliate diplomatically.
Why it matters: The move raises pressure on Israel over West Bank settlements and could deepen friction with a close Western ally. It also comes as Britain and partners try to keep support alive for a two-state solution.
- On Sept. 8, 2026, the UK announced a ban on trade in goods made in Israeli settlements in the occupied West Bank.
- Foreign Secretary Ed Miliband said the measures target illegal settlements and expansion, not Israel itself.
- Israel said it would close the British consulate in Jerusalem within 30 days and curb some UK diplomatic activity.
- The UK framed the move around settlement expansion, including the E1 project.
The UK said its action responds to Israeli settlement expansion in the occupied West Bank, including the E1 project, which London says could cut across land needed for a future Palestinian state. In his oral statement, Foreign Secretary Ed Miliband said the measures were aimed at preserving a two-state solution and said settlements are illegal under international law. Read the UK announcement Read the E1 statement
Israel responded by saying it would close the British consulate in Jerusalem within 30 days and restrict some UK diplomatic activity, according to AP. Israel's foreign minister, Gideon Saar, called the move despicable.
The UK action came alongside a joint statement from 12 foreign ministers, including those from the UK, France and Canada, backing the two-state solution and saying governments would take national measures on settlement goods. Read the joint statement
Reuters reported that the settlement goods at issue make up a small share of Israeli exports, which limits the economic impact of the move. Read Reuters reporting
By the numbers
- 30 days - Israel said it would close the British consulate in Jerusalem within that period.
- 12 foreign ministers - signatories to the joint statement backing the two-state solution.
Yes, but: The practical economic impact may be limited if settlement goods remain a small share of Israeli exports, as Reuters reported.
What's next: The main immediate checkpoint is the 30-day window Israel set for closing the British consulate in Jerusalem.