The U.K. government is pressing ahead with sanctions targeting Israeli settlements in the occupied West Bank, despite warnings from U.S. officials and lawmakers about economic fallout, according to a statement by Foreign Secretary Ed Miliband in parliament on Tuesday.
Miliband said Britain would ban imports from settlements built on land internationally recognized as Palestinian territory, with the measures expected to take six to nine months to implement. He also declared that “the official view of the British government is that the occupation is unlawful.”
Sanctions package details
The Foreign Secretary announced a “comprehensive sanctions regime” that will target specific companies and individuals providing construction, infrastructure, or financing for settlement real estate expansion. Britain will also ban advertisements related to the settlements.
“To those who finance or facilitate illegal settlements, let me say this: you will face the full force of U.K. sanctions,” Miliband told lawmakers. However, he stressed that Britain would continue to trade with Israel “precisely because we support the two-state solution, including security and prosperity for Israel.”
The U.K. will also extend its arms export ban to refuse license applications for goods and services that “materially contribute to the occupation.” Miliband described this as a “double lock against arms sales,” noting that the ban will remain in place “as long as the occupation exists.” This follows the earlier suspension of over 30 arms licenses used by the Israel Defense Forces in Gaza.
Miliband also said the British government agreed that “ethnic cleansing of Palestinians” is occurring in parts of the West Bank, “perpetrated by settler terrorists,” and accused the Israeli government of often turning a blind eye or supporting displacement.
Israeli and U.S. reactions
Shortly after the announcement, Israel said it would close the British consulate in Jerusalem. Foreign Minister Gideon Saar accused Britain of “systematically working against the state of Israel,” and twelve U.K. politicians were banned from entering Israel.
In Washington, Secretary of State Marco Rubio said the U.S. would not follow Britain’s lead, warning the move could affect progress on Gaza-related initiatives. U.S. Ambassador to Israel Mike Huckabee told the BBC that a U.S. response is “without a doubt” coming, and warned of a “huge economic impact on British businesses” if sanctions are enacted, including possible bans from doing business in some U.S. states.
Representative Randy Fine has already threatened consequences in Florida, citing a state law he passed that would bar companies forced to boycott Israel from contracting with state or local governments. Florida is one of Britain’s largest trading partners, Fine noted. The state previously placed Airbnb on its Scrutinized Companies list after the company removed West Bank listings, though Airbnb later reversed its policy.
Broader context
Several U.S. states have similar anti-BDS laws, including Texas, New Jersey, and Alabama. The Trump administration has also criticized European governments over their trading stances with Israel. Last year, the State Department said it was “very troubled” by Norway’s sovereign wealth fund divesting from Caterpillar and five Israeli banks over rights concerns.
Ireland recently passed a bill banning imports from certain Israeli settlements, drawing a U.S. embassy warning about “real unintended consequences” for nearly 1,000 American companies and urging Dublin to avoid pushing similar initiatives at the EU level.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/08/uk-israel-sanctions-miliband-florida-trump.html
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