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

The United Kingdom is set to unveil new limits on trade connected to Israeli settlements in the West Bank on Tuesday, a decision that was already prompting sharp criticism from officials in both Washington and Jerusalem by Monday.

The Times reported that the U.S. State Department said the Biden administration was “tracking the plans closely.”

The proposed restrictions are expected to cover an embargo on certain goods and services tied to West Bank settlements, according to reports. If confirmed, the move would mark a significant intensification of London’s pressure on Israel under Prime Minister Andy Burnham, who has adopted a tougher public position on the conflict.

The expected announcement would come just one day after Burnham held a phone call with President Donald Trump.

Prime Minister Andy Burnham delivers a speech.

Britain’s newly appointed Prime Minister Andy Burnham delivers a speech outside 10 Downing Street after taking office, in London, Britain, July 20, 2026. (REUTERS/Temilade Adelaja)

A Monday readout from No. 10 Downing Street said the two leaders discussed developments in the Middle East. During the call, Burnham emphasized Britain’s support for a two-state solution, under which an independent Palestinian state in the West Bank and Gaza Strip would exist alongside Israel.

“On the Middle East, the Prime Minister set out the UK’s commitment to working towards peace and security in the region, stressing the importance of the Two-State Solution,” the spokesperson said.

The readout did not mention the planned sanctions. Bloomberg reported, however, that the timing of the call suggested Burnham may have briefed Trump on the measures targeting goods and services linked to Israeli settlements in the West Bank.

The move could create an early point of friction between Burnham and Washington, where the Trump administration has strongly backed Israel, the outlet said.

British Foreign Minister Ed Miliband

British Energy Security and Net Zero Secretary Ed Miliband walks on Downing Street before a cabinet meeting after British Prime Minister Keir Starmer announced a timeline for his resignation, in London, Britain, June 23, 2026. (Toby Melville/Reuters)

The new measures, billed widely as sanctions, are expected to be formally unveiled by Foreign Secretary Ed Miliband, who has already pledged a “comprehensive reset” of Britain’s policy toward Israeli settlements in the West Bank.

Miliband signaled last week that measures were coming in response to Israeli settlement expansion, including the E1 project east of Jerusalem, according to The National.

He went on to describe E1 as a longstanding “red line” and said Britain would take action to protect the prospect of a two-state solution.

The planned sanction announcement has already drawn sharp criticism in Israel and the United States.

Israeli Finance Minister Bezalel Smotrich called for the British ambassador’s expulsion in a post on X.

“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,” Smotrich wrote. “The British Mandate in Israel is over.”

Israel's National Security Minister Itamar Ben-Gvir

Israel’s National Security Minister Itamar Ben-Gvir arrives for a cabinet meeting at the prime minister’s office in Jerusalem on Aug. 27, 2023. (MENAHEM KAHANA/Pool via REUTERS)

National Security Minister Itamar Ben-Gvir also condemned the planned restrictions, writing in Spanish on X that Israeli Prime Minister Benjamin Netanyahu should retaliate by recognizing Argentine sovereignty over the Falkland Islands and imposing sanctions on Britain.

Ben-Gvir accused Britain of having “violently” taken the disputed islands, known in Argentina as the Malvinas, the Times of Israel reported.

In the United States, Rep. Randy Fine, R-Fla., also warned in a post on X that the planned measures could implicate Florida’s anti-boycott law and potentially prevent some affected British companies from doing business with state and local governments.

Meanwhile, Burnham has joined leaders from Canada, France, Germany, Italy and other countries in condemning Israel’s E1 settlement expansion, arguing that the project threatens the viability of a future Palestinian state.

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