UK Plans Israel Sanctions; Israel Vows Retaliation — SkimNews

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- Ed Miliband announced a "comprehensive reset" of UK policy on Israel "in the coming weeks," examining how to stop UK companies from "financing, constructing or advertising new settlements" in the occupied West Bank — calling the E1 plans "illegal under international law" and "the crossing of a red line."
- Gideon Saar warned of retaliation, telling Ynet: "If Britain acts against Israel, Israel will act against Britain," and called any such UK action "a big mistake."
- Israel opened tenders last month for 1,200 settlement homes in the E1 area east of Jerusalem, a move that would divide the West Bank in two and isolate East Jerusalem.
- UK Prime Minister Andy Burnham said Israel's E1 announcement could "imperil or end" the two-state solution in the Middle East.
- All settlements are illegal under international law; under global pressure, Israel had held off on building in the E1 area for decades.
Why it matters: The UK is shifting from diplomatic criticism to specific measures targeting UK companies financing, constructing, or advertising West Bank settlements. With Israel pre-committing to reciprocal action, two historically close allies are heading toward an active bilateral confrontation over settlement policy.
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