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Explainer: Why are Israel, Britain at odds?

Xinhua
| September 9, 2026
2026-09-09

JERUSALEM, Sept. 9 (Xinhua) -- Israeli Foreign Minister Gideon Sa'ar on Tuesday announced a series of retaliatory measures against Britain over its latest moves targeting Israeli settlements in the occupied West Bank.

The measures include closing the British Consulate in Jerusalem, removing British representatives from the U.S.-led International Gaza Support Center, and barring 12 British officials from entering Israel.

Why has Israel hit back at Britain? How did ties between the longtime partners sour so sharply? And what does the latest diplomatic clash mean?

WHAT HAPPENED?

British Foreign Secretary David Miliband announced Tuesday that Britain would ban imports of goods originating from Israeli settlements in the West Bank and restrict British companies from providing certain services to them.

On the same day, foreign ministers from Britain, France, Canada and nine other countries issued a joint statement announcing plans to restrict trade in goods linked to Israeli settlements in the West Bank.

The statement urged the Israeli government to immediately halt settlement expansion in the West Bank, hold violent settlers accountable, and investigate allegations involving Israeli forces. It warned that settlement expansion, the advancement of the so-called E1 project and settler violence were undermining the prospects for a two-state solution.

The Palestinian presidency welcomed the joint statement, reiterating its commitment to a just and lasting peace based on international law and UN resolutions, including an end to the Israeli occupation and the establishment of an independent and sovereign Palestinian state along the 1967 borders, with East Jerusalem as its capital.

The E1 area lies between East Jerusalem and Ma'ale Adumim, one of the largest Israeli settlements in the West Bank. The international community has long warned that large-scale Israeli construction there could further fragment Palestinian territory in the West Bank and severely undermine the geographical viability of a future Palestinian state.

WHY NOW?

Britain has long been regarded as one of Israel's important European partners, with the two countries maintaining close cooperation in trade, security and other fields.

However, since October 2023 when the war broke out, disagreements between the two sides have widened over the humanitarian situation in Gaza, Israeli settlements in the West Bank and Palestinian statehood.

In June 2025, Britain, Australia, Canada, New Zealand and Norway jointly imposed sanctions on Israeli National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich, including asset freezes and travel bans.

The five countries accused the two ministers of repeatedly inciting violence against Palestinians in the West Bank, saying actions that contributed to serious abuses of Palestinian human rights were "unacceptable."

A more significant turning point came in September 2025, when Britain formally recognized the State of Palestine, saying the move was intended to preserve the possibility of a two-state solution.

An analysis published by the Financial Times said the deterioration in British-Israeli relations began over the Gaza conflict and deepened amid disputes over settlement expansion and settler violence in the West Bank.

The article described the bilateral ties at their worst in decades, warning that relations could worsen further in the short term as political differences begin to erode cooperation in areas like defense and trade.

WHAT'S AT STAKE?

The Times of Israel reported Tuesday that Britain's ban on imports from Israeli settlements is not aimed at Israel's economy as a whole, but is designed to draw a distinction between Israel and settlements in the occupied West Bank.

While restricting settlement-related imports and sanctioning companies and individuals involved in settlement expansion, Britain has stressed that it will continue trading with Israel and opposes broader boycott campaigns against the country.

Israeli anti-settlement watchdog Peace Now said measures targeting settlements should not be equated with sanctions against Israel itself. However, it warned that Israel could face growing international isolation if the government continues advancing construction in the E1 area and taking other steps seen as undermining the two-state solution.

The Guardian reported that Britain's move to directly restrict settlement-related trade represents a substantive shift in its efforts to defend the two-state solution.

Although settlement goods account for only a limited share of Israel's foreign trade and the immediate economic impact of the measures may therefore be modest, their political and symbolic significance could be greater, the report said.

The coordinated moves by Britain, France, Canada and other countries, alongside indications that more European states could consider similar measures, suggest that some Western countries are seeking a more coordinated mechanism to pressure Israel over its settlement policies in the West Bank, it added.

The latest confrontation also highlights a broader shift in Israel's relations with some of its traditional Western partners: disagreements once largely confined to diplomatic statements are increasingly translating into concrete economic and political measures, regional observers have said. Enditem

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