UK moves to sanction Israeli settlements as PM Burnham risks clash with Trump: report

United Kingdom to Impose Trade Restrictions on Israeli West Bank Settlements

London, Sept. 8, 2026 – The British government announced today that it will impose new trade restrictions targeting goods and services connected to Israeli settlements in the West Bank. The measures, part of a “comprehensive reset” of the UK’s policy on the occupied territories, are expected to take effect on Thursday and are being presented by Foreign Secretary Ed Miliband.

The Measures

According to the foreign‑office statement, the restrictions will constitute an embargo on certain goods and services linked to Israeli settlements, with a particular focus on the expansion project known as E1 east of Jerusalem. The E1 plan has long been viewed by many in the international community as a threat to the viability of a two‑state solution.

Miliband told reporters the UK would act “to protect the prospect of a two‑state solution” and that E1 was a “long‑standing red line” that could not be tolerated.

Timing and Context

The announcement follows a telephone call between Prime Minister Andy Burnham and U.S. President Donald Trump that took place on Monday, Sept. 7. In that conversation, Burnham reiterated the United Kingdom’s commitment to “peace and security in the region” and highlighted the importance of a two‑state solution.

A U.S. State Department spokesperson said Washington was “tracking the plans closely.” The timing of the call has prompted speculation that the president was briefed on the impending restrictions, a claim reported by Bloomberg.

The measures are part of a broader shift in UK policy that has come under criticism from both Israeli and U.S. officials who see the sanctions as an overreach and a challenge to long‑standing alliances.

Israeli Reaction

Israeli Finance Minister Bezalel Smotrich condemned the announced sanctions on X, writing, “We will not be a doormat for an antisemitic government in a country occupied by radical Islam that is trying to escape economic and social collapse by attacking Jews and the State of Israel.” He added, “The British Mandate in Israel is over.”

National Security Minister Itamar Ben‑Gvir also voiced strong opposition, urging Israel’s prime minister to retaliate against Britain. In a Spanish‑language post, he called on Israel to recognize Argentine sovereignty over the Falkland Islands and to impose sanctions on the United Kingdom, framing the British actions as “violent” interference.

Both ministers called for the expulsion of the British ambassador and warned that the sanctions could trigger diplomatic fallout.

U.S. Reaction

U.S. Representative Randy Fine, a Republican from Florida, cautioned that the sanctions could implicate Florida’s anti‑boycott law, potentially barring affected British companies from doing business with state and local governments. Fine warned that the U.S. federal government might need to step in to protect the interests of those companies.

Despite the U.S. concerns, the Trump administration has historically been a strong supporter of Israel. The sanctions are therefore likely to strain U.S.–UK relations, adding a new layer of complexity to an already tense partnership.

Broader International Context

Burnham has joined a coalition of European leaders, including those from Canada, France, Germany, Italy, the Netherlands, and Norway, in condemning the E1 settlement expansion. The joint statement from these countries framed the project as a direct obstacle to a future Palestinian state.

The United Kingdom’s policy shift represents a significant escalation in pressure on Israel. While the UK has historically maintained a more muted stance, the current administration’s hard‑line approach signals a willingness to use economic tools to influence settlement policy.

What Comes Next

Foreign Secretary Miliband is expected to present the full details of the sanctions on Thursday. The UK will likely set deadlines and compliance requirements, while monitoring the impact on trade flows and diplomatic relations.

Israeli officials have already indicated they will consider diplomatic and economic responses, and U.S. policymakers will need to decide whether to engage with or oppose the UK’s new stance. As the international community watches closely, the UK’s next moves may reshape the dynamics of the Middle East peace process and the longstanding U.S.–UK partnership.