UK Threatens Tougher Sanctions on Israeli Banks Over Settlements

Tensions between Israel and the United Kingdom have escalated following a diplomatic dispute. After Israeli Foreign Minister Gidon Saar announced the closure of the British Consulate in Jerusalem within a month, senior UK officials indicated that Britain might expand its sanctions regime against Israel in the coming months. According to these sources, the potential sanctions package being considered could target Israeli banks perceived as facilitating settlement construction and expansion in the West Bank. Specifically, Britain is examining the possibility of penalizing banks that provide mortgages for properties or projects located beyond the Green Line. Retail chains are also being considered for inclusion in the expanded sanctions.

The discussions surrounding the new sanctions are expected to continue for six to nine months. Previous sanctions announced by Britain include a ban on importing products from Israeli settlements. These measures are a response to Israel's intention to advance construction in the E1 area east of Jerusalem and the ongoing violence by settlers against Palestinians in West Bank villages.

Following Britain's initial move, other countries have expressed their intention to impose or support European sanctions on trade with settlements deemed "illegal under international law," or are actively considering such steps. In response to the threats, Israel has taken retaliatory measures, including closing the British Consulate in Jerusalem, expelling British representatives from the international aid center in Gaza, and halting British efforts to train Palestinian Authority forces. Britain criticized Israel's response, which also included an order for British representatives at the international center in Kiryat to leave within a week. Israel, however, maintains that its actions are a proportionate response to Britain's increasingly harsh stance.