UK Mulls Sweeping Sanctions on Israeli Banks Over Settlements

A diplomatic dispute between Israel and the United Kingdom is escalating, with London reportedly considering significant new sanctions that could impact Israel's financial sector. The conflict intensified after Israeli Foreign Minister Gideon Saar announced the closure of the British consulate in Jerusalem within a month. In response, senior UK sources indicated that sanctions against Israel could be substantially tightened in the coming months, potentially including unprecedented measures beyond a ban on goods from West Bank settlements. Discussions in London reportedly involve sanctioning Israeli banks that facilitate settlement construction and development, particularly those providing mortgages for homes beyond the Green Line. Major retail chains could also face sanctions. The UK has already implemented an initial package of measures, including a ban on imports from settlements, in response to Israel's decision to build in the E1 area. A broader set of restrictions is under discussion and expected to be finalized within six to nine months. Britain criticized Israel's retaliatory actions, which included ordering British representatives at an international headquarters in Kiryat Ata to leave the country within a week. Israel, however, deems its response proportionate, suggesting Britain's policy has become harsher than that of traditionally critical nations like Belgium.