Ed Miliband Vows Israel Policy Reset as Tensions Over West Bank Settlements Escalate

UK Foreign Secretary Ed Miliband announced on Tuesday a comprehensive reset of Britain’s policy toward Israel, vowing to prevent British companies from financing or constructing settlements in the occupied West Bank. The move comes after Israel issued tenders for 1,200 homes in the E1 area, which Miliband called illegal under international law and a crossing of a red line. Israel’s Foreign Minister Gideon Saar immediately warned that if Britain acts against Israel, Israel will act against Britain.

What Miliband is proposing

Miliband told Parliament on Tuesday that the government would examine how to stop UK companies financing, constructing, or advertising new settlements in the West Bank. He called the E1 project, which would involve 3,400 homes across a strategically important area east of Jerusalem, unacceptable and destructive. The settlement would cut through the heart of the West Bank and risk making a Palestinian state unviable, he said. Miliband promised to set out detailed measures in the coming weeks.

Israel’s immediate response

Israeli Foreign Minister Gideon Saar told Hebrew-language news website Ynet on September 1 that if Britain acts against Israel, Israel will act against Britain. He added that he thinks Britain would be making a big mistake. Saar’s warning marked an unusually direct threat from Israel in response to potential UK sanctions. Prime Minister Andy Burnham separately warned that Israeli decisions on E1 could imperil or end the two-state solution in the Middle East.

Why the E1 settlement matters

Israel opened tenders last month for the E1 project, which would construct homes in a strategically important area between East Jerusalem and the settlement of Ma’ale Adumim. The development would effectively divide the West Bank in two and isolate East Jerusalem. All settlements are illegal under international law. Germany’s Chancellor Friedrich Merz, typically a strong Israel supporter, called the E1 plan a big mistake. The UK joined 20 other countries, including France, Germany, and Italy, plus the European Union, in issuing a joint statement calling E1 unacceptable.

Pressure from multiple sides

Miliband faces competing demands. A group of former British diplomats called in May for the government to threaten action against companies bidding on illegal settlements. Meanwhile, the Board of Deputies of British Jews and the Jewish Leadership Council warned Miliband that a UK ban on settlement trade could fuel antisemitism. Omar Barghouti, co-founder of the Boycott, Divestment, Sanctions movement, said on September 2 that targeted sanctions on settlements are insufficient and that the UK should end all trade with Israel, including arms exports.

Final Thoughts

Miliband’s reset signals a significant hardening of UK policy on Israeli settlements, but Israel’s threat of retaliation raises the stakes for the British government. The outcome will likely depend on whether other allies, particularly the EU, move in parallel.

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