Britain imposed sanctions on Israeli settlements in the West Bank, citing "ethnic cleansing" of Palestinians. Israel reacted with fury, closing the British Consulate in Jerusalem and barring UK lawmakers. Foreign Minister Gideon Saar accused his British counterpart Ed Miliband of acting for "domestic political reasons" and spreading "outrageous lies." Analysts say the move may benefit Prime Minister Benjamin Netanyahu, who faces re-election within seven weeks and has struggled in polls.

The response reflects a broader shift away from a two-state solution, as even veteran diplomats note the absence of diplomatic engagement.