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UK to reset Israel ties, ban settlement goods

Created at 7 Sep · 6:40 PM1 source↑ Market-relevant
IN SHORT

UK Foreign Secretary Ed Miliband will announce a significant reset of relations with Israel, including a ban on trade with illegal settlements. The move aims to actively support Palestinian rights and international law, potentially drawing criticism from the US and Israel.

Key Numbers

£6bnUK-Israel trade in goods and services in 2025
46%UK adults in favour of banning trade with Israeli settlements
18%UK adults opposing a ban on trade with Israeli settlements

Who's Involved

Ed Miliband
UK Foreign Secretary announcing a reset of relations with Israel
Donald Trump
commented on UK sovereignty over the Falkland Islands
Benjamin Netanyahu
Israeli Prime Minister facing election and UK policy changes
Yair Netanyahu
son of Benjamin Netanyahu, commented on Falkland Islands sovereignty
Mike Huckabee
US ambassador to Israel, claimed Labour government is gripped by Jew hatred
Andy Burnham
Prime Minister who briefed allies on plans
Zack Polanski
Leader of the Greens on Palestine
Bezalel Smotrich
Israel's finance minister, holds up map showing E1 settlement project

↳ Why This Matters

This policy shift signals a more active UK stance on the Israeli-Palestinian conflict, potentially impacting diplomatic relations, international law adherence, and trade between the UK and Israel. It also reflects domestic political pressures and has drawn strong reactions from key international players.

Key facts

  • UK Foreign Secretary Ed Miliband will announce a reset of UK relations with Israel.
  • The UK will implement a ban on trade in goods and some services from illegal Israeli settlements.
  • The government will reassert the call for a two-state solution and protection of Palestinian rights.
  • Miliband stated that Israel places unnecessary controls on aid entering Gaza.
  • The UK officially regards Israeli settlements built on territories captured in 1967 as illegal under international law.

Foreign Secretary Ed Miliband is set to announce a significant shift in the UK's relationship with Israel, including a ban on trade with illegal Israeli settlements. This move, described as a 'reset', aims to actively support Palestinian rights and uphold international law, moving beyond mere rhetorical support for a two-state solution. Miliband intends to use stronger language than his predecessors to address the humanitarian injustices faced by Palestinians in Gaza, asserting that Israel places unnecessary controls on aid entering the territory. The Israeli foreign ministry has denied these claims.

The UK's ban on settlement goods aligns with an International Court of Justice advisory opinion and will extend to some services, such as financing and advertising. This policy shift comes amid growing domestic support in Britain for such a ban, with a significant majority favouring it. The UK officially considers all Israeli settlements built on territories captured in the 1967 war to be illegal under international law. Total trade between the UK and Israel was valued at £6bn in 2025, and the scale of potential disruption depends on Israeli reprisals.

The decision is partly influenced by Israel's E1 settlement project, which could effectively divide the West Bank, and the rise in settler violence. Miliband's stance also comes as the UK considers joining international legal actions against Israel. The intervention has already drawn sharp reactions, with Israel threatening reprisals and the US ambassador to Israel making controversial claims about the Labour government. Notably, comments from Benjamin Netanyahu's son, Yair, regarding the Falkland Islands and Donald Trump's subsequent remarks have added a geopolitical dimension to the unfolding situation.

Frequently asked questions

The UK officially regards all Israeli civilian settlements built on territories captured by Israel during the 1967 six-day war as illegal under international law.

The UK will ban trade in goods and some services, including financing and advertising, related to illegal Israeli settlements.

Israel has threatened reprisals, and the US ambassador to Israel has made critical remarks about the UK government's stance.

Total trade in goods and services between the UK and Israel was £6bn in 2025.

What Happens Next

01Miliband will make a statement to MPs.
02The UK government will implement the ban on trade with illegal Israeli settlements.
03Potential for Israeli reprisals on UK-Israel trade.

How It Developed

Ed Miliband will announce a reset of UK relations with Israel.
The UK will ban trade in goods and some services from illegal Israeli settlements.
Miliband will reassert the call for a two-state solution and protection of Palestinian rights.
Miliband will use firmer language regarding the humanitarian situation in Gaza.
Miliband maintains the UK's stance that Israel places unnecessary controls on aid entering Gaza.
The Israeli foreign ministry denied claims that aid had been held back.
The UK ban aligns with the ICJ advisory opinion on not aiding Israeli occupation.
The measures may require primary legislation and will extend to services like financing.

Sources

T1
Ed Miliband to set out ‘reset’ of UK relations with Israel over PalestineThe Guardian

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