The UK government has for the first time issued official guidance advising British businesses against economic and financial activity in Israeli settlements in the occupied Palestinian territories, alongside a new package of sanctions targeting organisations and individuals accused of supporting settler violence in the West Bank.
Foreign Secretary Yvette Cooper announced the measures in a statement to Parliament on 9 June, describing settlement expansion and settler violence as threats to the viability of a two-state solution. The updated guidance states that while the UK continues to support trade with Israel within its internationally recognised borders, businesses should avoid economic involvement in settlements that the government considers illegal under international law.
The announcement forms part of a co-ordinated effort involving Australia, Canada, France, New Zealand and Norway. The six countries have jointly targeted networks they say finance, support or enable violence against Palestinian communities in the occupied West Bank.
Why Has the UK Issued New Business Guidance?
The Foreign, Commonwealth & Development Office said the revised advice is intended to help companies assess legal, financial and reputational risks associated with operating in or alongside Israeli settlements.
While successive UK governments have maintained that Israeli settlements are illegal under international law, ministers have not previously issued explicit guidance advising British businesses against economic and financial involvement in them.
Cooper said the UK remained committed to a two-state solution and argued that continued settlement expansion was undermining efforts to achieve a lasting peace between Israelis and Palestinians.
New Sanctions Target Settler Groups
Alongside the business guidance, the UK announced sanctions against six entities and one individual under the Global Human Rights Sanctions Regulations 2020.
According to the government, those sanctioned include organisations and individuals accused of financing illegal settlement outposts, supporting settler groups linked to violence or facilitating activities that have contributed to the displacement of Palestinian communities in the West Bank.
The UK and partners are sanctioning networks enabling settler violence in the West Bank.
— Foreign, Commonwealth & Development Office (@FCDOGovUK) June 9, 2026
We are also advising British businesses against economic activity in illegal settlements. pic.twitter.com/S7P7imtgZX
Those designated include The Farms Association, Ahavat Gilad, Artzenu and Shivat Zion Lerigvey Admata. Construction company Eyal Hari Yehuda, its owner Itamar Yehuda Levi and settler activist Ari Yshag were also sanctioned.
The UK said the measures are intended to disrupt networks that have enabled extremist settler groups to operate in the occupied territories.
Those sanctioned will be subject to asset freezes and, where applicable, travel bans and director disqualifications. The restrictions also prohibit UK individuals and businesses from making funds or economic resources available to designated persons and organisations.
No immediate response from the Israeli government was included in the UK announcement.
More Aid for Gaza, Palestinian Authority
The sanctions package was accompanied by further UK support for Palestinian institutions and humanitarian programmes.
Cooper confirmed that the UK will provide an additional £1 million ($1.33 million) for humanitarian demining operations in Gaza, supplementing existing funding already allocated for mine-clearance activities.
The government also announced at least £10 million ($13.38 million) in financial and technical assistance for the Palestinian Authority during 2026. Officials said the funding is intended to help address ongoing fiscal pressures and support frontline public services, including healthcare.
The Foreign Secretary said the measures formed part of a broader effort to support peace and security in Israel and the Palestinian territories while preserving the possibility of a negotiated two-state solution. The UK has also indicated that further action could be considered if settlement expansion and settler violence continue to escalate.
