U.K. Halts Israel Trade Talks, Imposes Sanctions Amid Gaza Crisis and West Bank Violence

LONDON, May 21, 2025 — The United Kingdom has suspended free trade negotiations with Israel and imposed sanctions on West Bank settlers, escalating diplomatic pressure on Israeli Prime Minister Benjamin Netanyahu’s government over its intensified military offensive in Gaza and a 12-week aid blockade. The decision, announced Tuesday, follows a joint statement by U.K. Prime Minister Keir Starmer, French President Emmanuel Macron, and Canadian Prime Minister Mark Carney, who condemned Israel’s actions as “wholly disproportionate” and warned of “concrete actions” if the offensive and aid restrictions continue.

Foreign Secretary David Lammy labeled Israel’s policies “egregious,” citing the blockade’s “cruel” impact and government-backed settler violence in the West Bank as threats to the two-state solution.

Gaza’s Humanitarian Crisis and Military Escalation

Israel’s “Gideon’s Chariots” offensive, launched on May 5, 2025, aims to seize Gaza territory and displace its 2.3 million residents into a southern “humanitarian zone,” prompting fears of permanent occupation. The Gaza Health Ministry reports over 53,000 deaths since October 2023, including 2,507 since March, with 80% being women and children. The blockade, initiated March 2 to pressure Hamas into releasing 59 hostages, has cut aid deliveries to 200 trucks from a pre-war daily average of 500, triggering UN famine warnings.

On Monday, Israel allowed 93 aid trucks to enter, but UN official Tom Fletcher noted none reached their destinations due to ongoing hostilities, describing the aid as a “drop in the ocean.” Save the Children’s Patrick Robitaille warned of 14,000 infants at risk of starvation within days, with clinics reporting unprecedented malnutrition rates.

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Sanctions Target West Bank Settler Violence

The U.K. sanctioned three individuals—Daniella Weiss, Zohar Sabah, and Shlomo Sarig—and four entities, including Nachala, Libi Construction, Coco’s Farm Outpost, and Neria’s Farm Outpost, for inciting violence against Palestinians and expanding illegal settlements. Since Hamas’s October 7, 2023, attack, which killed 1,200 and took 251 hostages, settler attacks have surged, with 1,270 incidents in 2024 alone, per UN data, displacing thousands.

Lammy criticized Israel’s failure to curb violence, noting explicit support from ministers like Bezalel Smotrich, who has advocated “cleansing” Gaza. Israel’s Foreign Ministry called the sanctions “unjustified,” claiming trade talks were already stalled. The U.S., EU, France, and Canada have also sanctioned settlers, though measures have had limited impact due to Israeli government backing.

International Pressure and EU Review

The European Union, led by Kaja Kallas, is reviewing its trade agreement with Israel, with 23 member states supporting action over Gaza’s “untenable” conditions. France has intensified pressure, with Macron advocating a Palestinian state by June 2025 and proposing a halt to arms deliveries for Gaza operations, prompting Netanyahu’s rebuke.

The Netherlands and Spain have pushed for EU sanctions on Israeli ministers Smotrich and Itamar Ben-Gvir, whose calls for Gaza’s destruction have fueled ICC war crime charges against Netanyahu. Posts on X reflect public outrage, with some accusing the U.K. of hypocrisy for approving five targeting equipment shipments to Israel since a supposed arms ban, highlighting inconsistent enforcement.

Did You Know?
Daniella Weiss, sanctioned by the U.K., leads Nachala, which aims to resettle Gaza with Jewish communities, a plan supported by 15% of Israelis, per a January 2025 Pew Research poll.

Canada and G7 Dynamics

Canada’s Mark Carney, preparing to host the G7 summit in Kananaskis, Alberta, in June 2025, has positioned himself as a peace advocate, meeting European leaders during Pope Leo XIV’s inaugural mass. Finance Minister François-Philippe Champagne avoided detailing Canada’s potential actions at the G7 finance meeting in Banff, deferring to the leaders’ summit.

Canada’s silence on specific measures contrasts with the U.K.’s decisive steps, though Carney’s joint statement with Starmer and Macron signals alignment. The U.S., despite frustration with Netanyahu—evidenced by President Trump’s call to “wrap up” the war—continues military aid, creating tension with allies. Trump’s envoy, Steve Witkoff, has criticized Israel’s escalation, and Vice President JD Vance canceled a planned Israel visit, reflecting strained relations.

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Calls for Accountability and Ceasefire

In the U.K. Parliament, MPs from Labour, Conservatives, Liberal Democrats, Greens, and SNP demanded stronger measures, including halting all arms exports and recognizing Palestine. Labour MP Melanie Ward questioned the government’s “red line,” while others labeled Israel’s actions “genocide,” a term Lammy rejected as “extremist.” Netanyahu’s insistence on controlling Gaza and dismissing allied criticism as a “prize for Hamas” has deepened Israel’s isolation.

Humanitarian groups like Save the Children urge an immediate ceasefire, noting 9,000 pallets of aid await distribution at Gaza’s borders. The UN warns that Israel’s plan to replace aid delivery with private firms violates international law, risking further civilian deaths.