Britain, France, and Canada announced a coordinated move to stop trading with Jewish settlements in the West Bank, marking a significant shift in European policy toward Israel. Under new British Prime Minister Andy Burnham, the UK has taken the lead on opposing Israeli settlements, risking tension with the United States. The initiative follows France's earlier recognition of a Palestinian state under Emmanuel Macron. The European stance reflects growing domestic pressure, particularly in Britain, where Labour Party members have criticized the government's response to the Gaza conflict.

Israel responded sharply, ordering the closure of the British Consulate General in East Jerusalem, banning several British lawmakers from entering the country, and excluding Britain from a U.S.-led Gaza coordination mission. Gideon Saar, Israel’s foreign minister, accused the UK of acting against Israel and labeled the policy "morally distorted." Israel did not announce comparable measures against France, though it previously criticized Mr. Macron for pushing Palestinian statehood.

Experts say the economic impact may be limited, as settlement exports represent a small fraction of the $8 billion in annual trade between Britain and Israel. However, analysts warn the move could signal a broader diplomatic realignment, with Europe increasingly at odds with U.S. Middle East policy. The Biden administration has expressed concern over the escalation, while former U.S. Ambassador Daniel C. Kurtzer noted that labeling settlement goods has long been discussed but rarely implemented.