British-Israeli relations have reached their lowest point in decades after the UK and 11 other countries imposed restrictions linked to Israeli settlements in the occupied West Bank, BBC diplomatic correspondent Paul Adams writes.
The measures include a ban on products from settlements, restrictions on companies involved in settlement construction, infrastructure and finance, and limits on arms sales that materially contribute to the occupation.
Israel responded by closing the UK's consulate in East Jerusalem, which serves the West Bank and liaises with the Palestinian Authority in Ramallah. It also removed British representatives from the International Gaza Support Centre, which coordinates stabilisation and relief efforts in Gaza.
The report says the measures carry significant political symbolism, even though goods produced in settlements represent only a small proportion of Israel's exports. Britain, France, Spain and Canada were among the countries taking action together.
Foreign Secretary Ed Miliband described the policy change as a “reset” in Britain's approach. He said the UK agreed with the 2024 International Court of Justice ruling that the occupation, including Israel's military presence, was unlawful.
Miliband, who described himself as a “proud British Jew” and a supporter of Israel, also accused settler groups of violence and “ethnic cleansing” in parts of the West Bank, saying the Israeli government had turned a blind eye to it.
Israeli Foreign Minister Gideon Saar responded angrily. While some Israelis oppose the ideology and violence associated with certain settler groups, the report says many reject the view that settlements built on land captured during the 1967 Six-Day War are illegal.
Palestinian officials welcomed the restrictions. The Palestinian foreign ministry called for further measures against Israel's settlement activity, while Palestinian ambassador to the UK Husam Zomlot described the decision as a turning point in UK-Palestinian relations.
The report notes, however, that the measures have not ended Israel's occupation or substantially changed conditions on the ground. It says the prospects for a viable Palestinian state remain extremely limited and that the United States would have the greatest potential influence over Israel.
The action by the UK and its partners also places them at odds with Washington. The report says US President Donald Trump has shown no desire to curb Israeli Prime Minister Benjamin Netanyahu's settlement plans.