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The United Kingdom (UK) government is expected to announce a ban on trade with Israeli settlements in the occupied West Bank on Tuesday, September 8, in what could mark a significant shift in Britain’s policy towards Israel’s settlement programme.

Foreign Secretary Ed Miliband is expected to announce the measures, Middle East Eye (MEE) reported, citing Whitehall sources. The package is expected to include restrictions on goods produced in Israeli settlements and could extend to investment and other economic activity linked to them.

The Jerusalem Post reported that the measures could also include targeted sanctions against British institutions and individuals involved in settlement-related activity, as well as restrictions on the exchange of goods and services.

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Miliband told MPs last week that Britain needed a “comprehensive reset” of its policy towards the occupied West Bank. He said the government was examining ways to prevent British companies from financing, constructing or advertising new settlements.

The move comes amid continued settlement expansion and settler violence in the West Bank. The International Court of Justice said in its July 2024 advisory opinion that Israel’s continued presence in the occupied Palestinian territory was unlawful and that states should not recognise or assist in maintaining the situation.

The UN and most governments consider Israeli settlements in the occupied West Bank, including East Jerusalem, illegal under international law. Israel disputes that position.

Albanese calls for broader measures

UN special rapporteur Francesca Albanese has described the proposed British trade ban as an important policy change but said its impact would depend on its scope.

Speaking to The Guardian, Albanese said restrictions should not be limited to goods produced in settlements because those products account for only part of the economic activity supporting them.

She urged Britain to consider services and companies involved in construction, finance and insurance, and called for action against businesses involved in the proposed E1 settlement project east of Jerusalem.

The E1 development has drawn international concern because of its potential to divide the occupied West Bank and separate East Jerusalem from other Palestinian areas.

The Labour Muslim Network and the International Centre of Justice for Palestinians have separately called for a wider prohibition on economic and financial activity by British individuals and companies connected to Israeli settlements.

Israeli military raises security concerns

The expected British measures come as Israel’s military has reportedly warned the political leadership that it could struggle to protect the growing number of new settlements and settler outposts in the occupied West Bank.

Haaretz reported on Monday that military officials had raised concerns over new sites, particularly in the northern West Bank, with some lacking adequate roads, surveillance systems and communications infrastructure.

Some officials reportedly described the establishment of certain sites as “reckless”, arguing that political considerations had taken precedence over security needs.

The expansion is also increasing the military burden. The number of Israeli army battalions under Central Command, which oversees the West Bank, is expected to reach 26 this week, according to Haaretz.

At least 103 settlement outposts and agricultural farms have been approved under the current Israeli government in areas overseen by Central Command and in the Jordan Valley, the newspaper reported.

Netanyahu orders reported outpost removals

The military concerns come shortly after Prime Minister Benjamin Netanyahu reportedly ordered the dismantling of unauthorised settler outposts.

Two people familiar with the decision told Reuters that Netanyahu issued the order following US pressure to address escalating settler violence against Palestinians. Israeli media reported that about 100 outposts could be affected, although no timetable for the operation has been announced.

Finance Minister Bezalel Smotrich confirmed that Netanyahu had instructed authorities to remove sites established in Areas A and B of the West Bank, while opposing the decision. He also pointed to the government’s expansion of settlements in Area C, which is under full Israeli control.

The reported decision followed criticism from US Ambassador to Israel Mike Huckabee, who described violent settlers as “terrorists” and called for serious consequences.

Israel’s Supreme Court has separately ordered authorities to allow three Palestinian families to return to their homes in the West Bank village of Jalud after settlers forced them out.

The court ordered Israeli security forces to protect their return and criticised authorities over their handling of the violence.

Palestinian families face demolition threats

The expected UK announcement comes as Palestinian communities in the Jordan Valley face demolition orders and threats of displacement.

ReliefWeb reported that 36 Palestinian families in the Abu El Ajaj Bedouin community near Jiftlik face possible displacement after more than 40 demolition orders were issued against homes and other structures.

Residents said armed settlers delivered the orders and gave families until Wednesday, September 9, to leave, while allegedly threatening violence against those who refused.

Residents in the nearby Ash-Shuneh community have reported similar intimidation, although some demolition measures have reportedly been postponed.

The communities rely partly on mobile medical services because Palestinians in Area C face restrictions on establishing permanent infrastructure.

Medical Aid for Palestinians said its mobile clinics reached 1,128 people in Jiftlik during the first six months of 2026. The organisation has called on Britain to ensure its settlement policy addresses the economic structures supporting expansion and protects communities facing displacement.

Katz threatens ‘full-scale war’ against PA

On Monday, Israeli Defence Minister Israel Katz said he and Prime Minister Benjamin Netanyahu had instructed the military to prepare for a “full-scale war” against the Palestinian Authority if its security forces were believed to be preparing an attack against Israeli forces or settlements similar to the 7 October 2023 Hamas attack.

Katz said any such campaign would target the senior leadership and institutions of the Palestinian Authority, as well as what Israel describes as terrorist infrastructure in the West Bank. He also referred to targeted killings and the possible evacuation of residents from areas where Israel alleges attacks are being organised.

His remarks followed a stabbing near an Israeli settlement in the northern occupied West Bank. An Israeli man was critically injured, while Israeli forces later said they had killed the Palestinian suspect. Several Palestinian villages were reportedly placed under lockdown following the incident.

The warning came amid heightened violence across the West Bank, including continuing attacks by Israeli settlers against Palestinian communities.