Israel Threatens Retaliation if UK Imposes Sanctions over West Bank Settlements

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September 2, 2026 | 10:08 am

TEMPO.CO, Jakarta Israel has warned that it will retaliate against the United Kingdom (UK) if London imposes sanctions over Israeli settlement expansion in the occupied West Bank, escalating tensions between the two countries.

As reported by BBC, Israeli Foreign Minister Gideon Saar issued the warning after British Foreign Secretary Ed Miliband said the UK would introduce a “comprehensive reset” of its policy toward Israel in the coming weeks.

Israel Warns of Retaliation

Speaking to the Hebrew-language news website Ynet, Saar said Israel would respond if Britain takes action against it.

“If Britain acts against Israel, Israel will act against Britain,” Saar said.

“If they act, I think they will be making a big mistake,” he added.

His remarks came after Miliband told Parliament that the British government was examining ways to prevent UK companies from “financing, constructing or advertising new settlements” in the occupied West Bank.

The UK has also been considering further measures against Israeli settlements, including possible restrictions on trade in settlement-produced goods.

UK Condemns E1 Settlement Plan

The dispute centers on Israel’s plans to expand settlements in the E1 area, a strategically important tract of land east of Jerusalem.

Last month, Israel opened tenders for the construction of about 1,200 settlement homes in the area, drawing widespread international condemnation.

Miliband described the E1 development as “the crossing of a red line,” warning that it cuts through the heart of the West Bank and could make a future Palestinian state unviable.

The proposed development would effectively divide the West Bank and further isolate East Jerusalem, according to critics of the plan.

The UK government has said it will set out a broader package of measures toward Israel in the coming weeks.

E1 Plan Raises Fears Over Two-State Solution

The E1 area has long been considered particularly sensitive because development there could undermine the territorial continuity needed for a future Palestinian state.

The two-state solution, which has received broad international backing, envisions an independent Palestinian state in the West Bank and Gaza, with East Jerusalem as its capital, existing alongside Israel.

Israel opposes the two-state solution, while the Palestinian Authority supports it. Hamas also rejects the proposal, opposing Israel’s existence.

The E1 settlement plans had been held back for years amid international pressure, but Israel has now moved forward with tenders for new housing in the area.

The development has renewed international concern that settlement expansion could permanently undermine prospects for a negotiated two-state settlement.

UK-Israel Relations Face New Strain

The dispute marks another point of tension between Britain and Israel as the UK government faces pressure to take stronger action over settlement expansion and violence against Palestinians in the West Bank.

Miliband said Britain would not accept actions that threaten the viability of a future Palestinian state and pledged to announce a comprehensive package of measures.

Israel, meanwhile, has warned that any British sanctions could trigger a response.

Saar's warning raises the prospect of further deterioration in UK-Israel relations as London weighs its next steps over the expansion of Israeli settlements in the West Bank.

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