UK-US Trade Could Suffer From Sanctions on Illegal Israeli Settlements, US Ambassador Warns

Britain is preparing to ban trade with illegal Israeli settlements in the West Bank, opening a new and more confrontational chapter in its relationship with Israel. Foreign Secretary Ed Miliband will set out the policy in a statement to MPs, alongside renewed support for Palestinian rights and a two-state solution.

The move is expected to provoke criticism from both the United States and Israel. The American ambassador has warned that sanctions over the settlements could damage UK-US trade, adding an economic risk to an already sensitive foreign-policy decision.

The Guardian frames the announcement as a significant break from the previous government’s approach. Prime Minister Keir Starmer had faced anger from some progressive voters who believed he had not done enough to respond to Israel’s treatment of Palestinians, despite Britain’s formal recognition of Palestine last year.

The article says the new government under Andy Burnham has often followed a “continuity Starmer” approach in its early days. On Israel, however, it is preparing to take a bolder step, one that could recast the UK-Israel relationship.