France’s Foreign Minister Jean-Noel Barrot confirmed the move in a social media post, stating, “France will end trade with Israeli settlements in the occupied Palestinian Territories, along with 11 other countries that have made similar commitments.” Barrot added, “France cannot, through its trade, support a situation that threatens the security of both Israelis and Palestinians” [1]. The announcement follows a joint statement from a group of 11 countries condemning the Israeli government's actions in the occupied West Bank [2].
Miliband announced that the UK would impose sanctions on specific companies and individuals who provide services such as construction, infrastructure, financing, or real estate for settlement expansion. The UK also declared the Israeli occupation of Palestinian territory illegal and announced a ban on arms licenses and exports that “materially contribute to the occupation” [1]. Miliband told the Commons that the UK had recognized the “ethnic cleansing of Palestinians” in the occupied West Bank [7].
These measures follow a joint statement from 12 countries—Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden, and the UK—confirming their intention to introduce restrictions on trade in goods with settlements [3]. The actions are described by Whitehall sources as the start of a new foreign policy approach, with further measures expected to follow [1]. This builds on earlier warnings from officials that the UK should have “no economic involvement in illegal settlements” [4].
The Israeli government, led by Prime Minister Benjamin Netanyahu, has faced international criticism for accelerating settlement construction in the West Bank. Earlier this year, Israel opened tenders for the construction of some 1,200 settlement homes in a strategically important part of the occupied West Bank, according to reports [1]. The proposed E1 project is designed to connect Jerusalem to Ma'ale Adumim, carving into land on which Palestinians seek to establish their state [1]. Netanyahu has signed agreements to advance a $1 billion settlement expansion, with the E1 plan bisecting the West Bank [5].
The actions come amid a broader international legal context. A 2024 ruling by the International Court of Justice (ICJ) declared Israel’s occupation of Palestinian territory illegal, a ruling that Britain and other states are now being urged to implement [6]. Miliband said the move marked the “beginning of a new approach” to the conflict which “not only calls out injustice and suffering but acts” [7]. Belgium has also voted to recognize Palestinian statehood and impose sanctions on Israel, including a ban on imports from illegal settlements [8]. The Netherlands is likewise advancing a national ban on imports from illegal settlements [9].
US officials have threatened retaliation against the UK over the sanctions, according to reports [1]. Prime Minister Andy Burnham briefed President Donald Trump on the plans on Monday afternoon, despite the United States privately urging the British government not to go ahead with the measures. Burnham has not spoken with Israeli Prime Minister Benjamin Netanyahu since taking office in July [1]. U.S. Secretary of State Marco Rubio offered relatively restrained remarks on Tuesday in response to the allied actions, according to a report [10].
Israel has responded with fury, accusing Miliband of spreading an “outrageous lie” and announcing countermeasures, including shutting the UK’s consulate [7]. The announcement follows an earlier report that the UK planned to ban settlement goods and that Miliband had consulted civil society groups [11]. Israeli growers in the Jordan Valley are preparing for the impact of the new Western sanctions, while Palestinians have strongly backed the ban on settlement goods [12]. French, UK, and Canadian actions align with sanctions previously imposed on Israeli settler violence networks [13].
The coordinated sanctions by the UK, France, and Canada, joined by nine other nations, mark a significant diplomatic shift in the Israeli-Palestinian conflict. By linking trade restrictions to the ICJ’s ruling on the illegality of settlements, these governments are translating international legal opinions into economic policy [6] [15]. The UK’s declaration that the occupation itself is unlawful represents a firm position on a long-contested issue [14].
The reaction from Israel, which includes the shutting of the UK consulate, indicates the sanctions carry weight beyond their direct economic effect [7]. This development places pressure on other nations to take a stance on settlement goods. As the measures take effect, the impact on the ground—on both settler enterprises and Palestinian communities—will be observed closely, with further actions from the coalition expected in the coming months [1] [16].