UK Govt Bans Goods from Israeli Settlements in the West Bank as it Toughens Its Stance

A new Israeli settlement near the Palestinian village of Turmus Ayya in the Israeli-occupied West Bank, February 24, 2026. (Reuters)
A new Israeli settlement near the Palestinian village of Turmus Ayya in the Israeli-occupied West Bank, February 24, 2026. (Reuters)
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UK Govt Bans Goods from Israeli Settlements in the West Bank as it Toughens Its Stance

A new Israeli settlement near the Palestinian village of Turmus Ayya in the Israeli-occupied West Bank, February 24, 2026. (Reuters)
A new Israeli settlement near the Palestinian village of Turmus Ayya in the Israeli-occupied West Bank, February 24, 2026. (Reuters)

The United Kingdom on Tuesday banned trade with Israeli settlements in the occupied West Bank, where it says “settler terrorists” are carrying out “ethnic cleansing” of Palestinians.

In response, Israel said it would close the British consulate in Jerusalem, the country’s foreign minister said Tuesday.

Foreign Secretary Ed Miliband said the UK will ban imports of all goods from the settlements and bar companies from providing services for the settlements, including financing, construction, infrastructure, real estate and advertising. He said France and Canada would also ban trade in goods from settlements.

“I do not believe the British people want us supporting the occupation by accepting products from settlements in our shops and supermarkets," Miliband said.

The economic impact is likely to be limited, since the settlements produce only a small amount of largely agricultural exports. But the move is a symbolic expression of displeasure with Israel by some of its closest allies, and new sign of its growing isolation as a result of the Gaza war.

Miliband said that he feels “a deep sense of shame about what has unfolded in Palestine under the eyes of the international community.”

“We will not acquiesce in the destruction of the two-state solution,” he said.

In a statement, Israeli Foreign Minister Gideon Saar said Israel would undertake other countermeasures, including expelling UK representatives from a joint military center monitoring the Gaza ceasefire and ending UK training of the Palestinian Authority’s security forces in the West Bank.

In addition, Israel will prevent the entry into Israel of 12 elected UK officials, as well as other British citizens Saar said were “involved in antisemitic and anti-Israel activity.”

US Secretary of State Marco Rubio said Tuesday the United States will not join Britain-led sanctions on trade with Israeli settlements and that it does not want anything to destabilize the West Bank. 

"Obviously, we're not going to do what the UK did," Rubio told journalists of the sanctions before departing on a trip to Latin America, adding: "We don't want to see anything destabilizing going on right now in the West Bank with so much going on in the region." 

Settlements have expanded under Netanyahu

Under the ultranationalist government of Israeli Prime Minister Benjamin Netanyahu, settlement construction in the West Bank — seized by Israel in the 1967 Mideast war — has surged. Netanyahu’s government views the West Bank as the biblical and historical homeland of the Jewish people and is opposed to the creation of a Palestinian state.

The international community overwhelmingly considers such construction to be illegal and an obstacle to peace. Britain and other countries have voiced particular concern about the E1 settlement project approved by Israel, which would effectively cut the territory in two. Palestinians and rights groups say it could destroy hopes for a future Palestinian state.

There have been marked increases in attacks by settlers on Palestinians, evictions from Palestinian towns, Israeli military operations and checkpoints that choke freedom of movement, as well as several Palestinian attacks on Israelis.

“The British government agrees that there is ethnic cleansing of Palestinians in areas of the West Bank, perpetrated by settler terrorists,” Miliband said. He said there had been “houses bulldozed, roads and public infrastructure destroyed, families displaced from their homes.”

The ban on trade will be in place in six to nine months, Miliband said. He said Canada and France will also announce a ban on goods from Israeli settlements, while Denmark, Finland, Iceland, Poland, Portugal and Sweden have pledged to “support further action.”

The Netherlands, Ireland, Belgium, Spain and Norway have either banned goods from settlements or are in the process of doing so, he said.

Miliband also tightened Britain’s embargo on weapons sales to Israel for use in Gaza to include arms “that materially contribute to the occupation” of Palestinian territories.

Move follows UK recognition of a Palestinian state

The United Kingdom, a longtime ally of Israel, recognized Palestinian statehood last year in an attempt to revive dwindling efforts to achieve a two-state solution.

The center-left Labour Party government has previously sanctioned some Israeli settlers and illegal outposts over violence against Palestinians and illegal development in the West Bank.

In a change of Britain’s position, Miliband said Tuesday that the UK regards Israel’s occupation of the West Bank, and not just the settlements, as illegal.

The tougher stance is likely to be welcomed by many Labour voters and lawmakers, who have urged the government to go further in sanctioning Israel and supporting the Palestinians.

But some Labour members expressed concern that the sanctions could boost support for Netanyahu, who is facing a tough battle for reelection in October, or lead to attacks on British Jews.

Opposition Conservative Party foreign affairs spokesman Tom Tugendhat said that "turning Israel into a pariah will risk sectarian division in own country and risk a further rise in antisemitic violence on our own streets.”

Announcement sparks anger in Israel

Israeli President Isaac Herzog called the ban “a grave miscalculation, a decision that will fall on the wrong side of history.

“In the current context, it would be a gross interference in the democratic elections of a sovereign nation,” he said.

Senior Israeli ministers also condemned the UK government’s position before the actual announcement was made. Saar warned that “if Britain acts against Israel, Israel will act against Britain.”

Itamar Ben-Gvir, Israel’s hard-line public security minister and a settler leader, called on Netanyahu to recognize Argentina’s claim to the Falkland Islands, a British overseas territory in the South Atlantic known in Argentina as Islas Malvinas.

The move was also criticized by the US ambassador to Israel, Mike Huckabee, a longtime supporter of the settlements, who said that it was “discrimination against the Jewish people.” He said the UK could face “repercussions or retaliations” from the US if it imposed the sanctions.

Several US states have laws banning contracts or investments with businesses that boycott Israeli firms, including those based in the West Bank. US Rep. Randy Fine, a Florida Republican, said in a post on social media that the UK ban could put at risk “billions of dollars” in trade between British businesses and Florida.

Prime Minister Andy Burnham’s office said he spoke with US President Donald Trump on Monday and set out “the UK’s commitment to working toward peace and security in the region” and achieving a two-state solution. There was no word on how Trump responded.



Hamas Members Struggle to Spend Cash Salaries

A Palestinian gives a child a sip of water from a bag bought for one shekel amid extreme heat in Gaza City in August 2025 (AP) 
A Palestinian gives a child a sip of water from a bag bought for one shekel amid extreme heat in Gaza City in August 2025 (AP) 
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Hamas Members Struggle to Spend Cash Salaries

A Palestinian gives a child a sip of water from a bag bought for one shekel amid extreme heat in Gaza City in August 2025 (AP) 
A Palestinian gives a child a sip of water from a bag bought for one shekel amid extreme heat in Gaza City in August 2025 (AP) 

Until three weeks ago, merchants in the Gaza Strip were still accepting cash from residents, even though much of it consisted of worn-out banknotes. But they began gradually refusing cash more than 10 days ago, hardening their stance over the past four days and turning instead to banking apps and electronic wallets.

The shift has coincided with intensified Israeli targeting and killing of Hamas financial officials in recent weeks, including some involved in delivering salaries to the group’s members.

Hamas employees told Asharq Al-Awsat that most government workers and members of its military wing, the Al-Qassam Brigades, receive their salaries in cash.

Several Hamas sources said government employees receive part of their salaries roughly every 100 days, amounting to only about 1,000 shekels ($328), often in worn banknotes. Al-Qassam members, meanwhile, are paid every 40 to 50 days, receiving up to around 60 percent of their salaries and no less than approximately 1,200 shekels, generally in banknotes in good condition.

People dealing with Gaza’s markets told Asharq Al-Awsat that some merchants had recently begun accepting cash from individuals and transferring the equivalent electronically through apps and e-wallets in exchange for commissions of up to 10 percent.

The crisis marks a reversal from the peak years of the war that began in October 2023, when Gazans struggled to convert money held in electronic wallets into cash. Commissions started at 10 percent and at times reached 60 percent before electronic transactions became more widespread.

In August, an Israeli military spokeswoman warned Palestinians in Gaza against using a category of old shekel banknotes marked with the letter “B,” in a move aimed at economically squeezing Hamas.

What Do We Do With Worn Banknotes?

Ahmed al-Najjar, 39, an employee of the Hamas-run government in Gaza, angrily questioned what employees were supposed to do with the worn banknotes they received.

“How long will things remain this way?” he told Asharq Al-Awsat. “We are the ones paying the price with our lives, and we find no one standing with us — neither officials nor merchants — while others fight us in different ways to make huge profits and gains.”

Israel has barred cash from entering Gaza since Oct. 7, 2023, while banks suffered major thefts during the war. Israeli security authorities also sought to impose conditions on Gaza merchants after periodically allowing goods into the enclave, requiring payments through electronic applications in a move aimed at restricting Hamas.

Under the new circumstances, Hamas appears to be facing a serious cash shortage affecting its members and employees, coinciding with repeated Israeli killings of funding sources, money changers and prominent figures in its financial apparatus.

Hamas Warns Merchants

The Hamas-run police in Gaza issued a general directive warning shopkeepers and others against refusing cash. It stressed that they must accept different types of banknotes, old and new, provided they are not damaged, and threatened violators with strict legal measures.

A Hamas police official told Asharq Al-Awsat that the issue did not affect only government employees or Hamas members, but also families of orphans, war victims, wounded Palestinians and prisoners who receive financial assistance from various relief organizations but cannot find merchants willing to accept their cash.

Hamas-affiliated media in Gaza have also launched a campaign against banks operating under the Palestinian Monetary Authority in Ramallah, accusing them of encouraging merchants to switch exclusively to electronic payments and of closing hundreds of residents’ bank accounts. Some banks have repeatedly denied the allegations, reiterating days ago that no decisions had been made to close accounts.

The dispute has fueled an unprecedented social media campaign warning people against giving up cash in favor of banking apps and other electronic wallets. The campaign has included warnings that a new war between Iran and the United States could soon engulf the entire region again, potentially causing people to lose money held electronically.

An official banking source rejected those claims, telling Asharq Al-Awsat that funds held in banks would remain secure and that a shift toward electronic transactions was underway.

The source said banks were routinely updating customer information and identifying account holders’ activities amid concerns that some funds could be linked to money laundering. Banks, the source added, had instructions to facilitate Palestinians’ access to accounts as part of financial inclusion efforts taking place in both Gaza and the West Bank.

Israel recently killed Jabr Moqbel, the owner of a currency-exchange shop and a prominent Al-Qassam Brigades member in Gaza City, in a strike on a vehicle in Deir al-Balah. Mohammed Abu Alwan, a Hamas financial official, was killed in a strike in Khan Younis. A Palestinian Islamic Jihad financial official was seriously wounded Sunday in an attempted assassination west of Gaza City.

The Israeli military said in a recent statement that throughout the war it had killed 16 prominent financial operatives involved in transferring funds and financing Hamas’ military activities. It said the operatives had managed transfers worth more than $1 billion through a network of dozens of money changers in Türkiye and Gaza.

The military said it and the Shin Bet were focusing their efforts on damaging Hamas’ financing capabilities and preventing the rebuilding of its infrastructure and military capabilities.


Yemen: Taiz Fronts Drain Houthis, Target Reinforcements

The Houthis suffer heavy losses during attacks on Yemeni government forces (AFP)
The Houthis suffer heavy losses during attacks on Yemeni government forces (AFP)
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Yemen: Taiz Fronts Drain Houthis, Target Reinforcements

The Houthis suffer heavy losses during attacks on Yemeni government forces (AFP)
The Houthis suffer heavy losses during attacks on Yemeni government forces (AFP)

Yemeni government forces have intensified air and artillery strikes against the Houthis in Taiz governorate as fighting continues along the province’s western, southern and eastern fronts, with no major change in territorial control reported in recent hours, according to military sources and government media.

Government warplanes on Sunday targeted Houthi positions, gatherings and reinforcements across Taiz. Forces involved in the fighting said they had thwarted Houthi infiltration attempts on several fronts, while strikes extended to other positions in Lahj near Bab al-Mandab.

Military and local sources reported that airstrikes hit Houthi positions and gatherings east of Taiz city after the group brought in personnel and military reinforcements. The raids also targeted a Houthi camp and vehicles at Mawiyah Junction, positions on the Al-Akboush front to the southeast, and a reinforcement convoy on 60th Street north of Taiz.

Government forces had earlier announced strikes on a supply convoy on 60th Street, reinforcements in the Hanna area of Al-Wazi’iyah district west of the governorate, and positions and weapons, ammunition and missile depots at the Mawiyah and Al-Dhikra junctions to the east. A Houthi gathering in Al-Suwayda in Hayfan district to the south was also targeted.

Military sources said the raids destroyed vehicles and killed and wounded Houthi fighters, including field commanders, but provided no independently verifiable figures for the losses.

Government forces also used drones to target Houthi positions, vehicles and gatherings on several fronts, indicating an intensified use of airstrikes to counter the group’s military movements and reinforcements.

Infiltration Attempts

On the ground, the Taiz Military Axis command reported that government forces thwarted a Houthi infiltration attempt on the Al-Ahtoub front in Jabal Habashi district west of Taiz and targeted Houthi fighters as they tried to approach government positions in the Hazran area.

Government forces also struck a Houthi vehicle with a mortar round on the Al-Kaddahah front and targeted gatherings on the Al-Aqroudh front southeast of the city.

The developments came as the Taiz, Lahj and Bab al-Mandab fronts remained on high alert, with attacks and counterattacks continuing around high ground and forward positions, particularly along the Jabal Numan, Kahbub, Al-Alaqma and Rasin axes.

Available battlefield information showed no signs of a new Houthi advance. Fighting remained concentrated in forward areas and on the high ground surrounding Jabal Numan, while the Houthis continued attempts to retake parts of positions they had lost along that axis.

At Kahbub, on the road leading to Bab al-Mandab, the Southern Giants Brigades said they targeted Houthi gatherings and vehicles and destroyed an armored vehicle, killing those aboard. Fighting continued on the Al-Wazi’iyah and Al-Mudaraba fronts.

Fighting Expands

The pattern of strikes over the past two days shows the fighting extending from front lines to supply positions, gathering points, camps and weapons depots as Yemeni government forces seek to limit the Houthis’ ability to send fresh reinforcements to the Taiz and Lahj fronts.

Targets have included Mawiyah and Al-Dhikra junctions east of Taiz, Al-Hawban, 60th Street north of the city, Hayfan to the south and Al-Wazi’iyah to the west, as well as positions in neighboring Ibb governorate.

The fighting is therefore no longer confined to direct clashes over high ground, with Houthi supply lines and military movements repeatedly targeted by airstrikes.

The Houthis, meanwhile, continued attempts to pressure several fronts, particularly the western axes, which are important because of their proximity to the road leading to coastal areas and Bab al-Mandab, where they are seeking to secure their gains.

The intensified military operations come amid indications of rising Houthi casualties. The group acknowledged the death of Majd al-Din Hamid al-Hamzi, whom military sources said was head of operations for the Third Missile Brigade, along with several of his escorts following fighting on the western coast fronts.

Yemeni monitoring data indicated that Houthi media outlets and affiliated platforms announced funerals for 422 members of the group in September, including officers and military commanders.

Sources that compiled the figures said the number did not represent the Houthis’ total losses because the group does not regularly announce all its dead. Some funerals are delayed, while others are buried without media coverage, and bodies remaining in hospitals or combat zones are not included in the tally.

The sources reported that 60 Houthi fighters were buried last Friday alone after being killed on various fronts. Losses were particularly concentrated on the Taiz and Lahj fronts, according to local reports.

The fighting was also accompanied by reports of fighters’ bodies remaining in some combat areas, prompting local appeals for the Red Cross and Red Crescent to retrieve them amid fears of humanitarian and environmental consequences.


Dutch FM Regrets Israel's Decision to Revoke Diplomats' Accreditation

Dutch Minister of Foreign Affairs Tom Berendsen arrives for a Council of Ministers meeting at the Ministry of General Affairs in The Hague, the Netherlands, 18 September 2026.  EPA/KOEN VAN WEEL
Dutch Minister of Foreign Affairs Tom Berendsen arrives for a Council of Ministers meeting at the Ministry of General Affairs in The Hague, the Netherlands, 18 September 2026. EPA/KOEN VAN WEEL
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Dutch FM Regrets Israel's Decision to Revoke Diplomats' Accreditation

Dutch Minister of Foreign Affairs Tom Berendsen arrives for a Council of Ministers meeting at the Ministry of General Affairs in The Hague, the Netherlands, 18 September 2026.  EPA/KOEN VAN WEEL
Dutch Minister of Foreign Affairs Tom Berendsen arrives for a Council of Ministers meeting at the Ministry of General Affairs in The Hague, the Netherlands, 18 September 2026. EPA/KOEN VAN WEEL

The Netherlands said Monday it regretted Israel's decision to revoke the diplomatic accreditation of Dutch officials based in the West Bank over the country's sanctions on goods from Israeli settlements.

"I deeply regret this unnecessary decision," Foreign Minister Tom Berendsen said, adding that the decision by The Hague to suspend imports from the occupied territories in the West Bank was "not directed against Israel.”

Israel earlier this month ordered the closure of the British Consulate in East Jerusalem, which is Britain's representative with the Palestinian Authority, after London announced similar sanctions banning the import of goods from settlements.

Israeli Foreign Minister Gideon Saar said on X that Dutch diplomats operating in Ramallah ⁠must return their ⁠Israeli-issued diplomatic documentation within seven days, when their diplomatic privileges and immunities are due to expire.

"Any country that acts in a hostile and unilateral manner against Israel will lose influence and relevance in the region," Saar said.