The United Kingdom has formally suspended its free trade agreement negotiations with Israel, citing grave concerns over Israel’s conduct during the ongoing war in Gaza.

This announced by Foreign Secretary David Lammy on May 20, 2025, marks a significant escalation in diplomatic pressure on Israel from one of its longstanding allies and comes alongside new UK sanctions targeting Israeli settlers in the occupied West Bank.

Lammy, addressing the House of Commons, stated that while the UK remains committed to Israel’s security and its right to self-defence, the “conduct of the war in Gaza” and the Israeli government’s policies in both Gaza and the West Bank have become “egregious” and are damaging the bilateral relationship. He emphasised that the UK cannot proceed with trade negotiations with a government that is “blocking aid, escalating the conflict, and ignoring the concerns of friends and partners,” describing such actions as “indefensible”.

The UK’s decision follows a period of mounting international outrage over Israel’s expanded military operations in Gaza, which have resulted in hundreds of Palestinian deaths and severe restrictions on humanitarian aid. Prime Minister Keir Starmer intensified his criticism, calling the suffering of children in Gaza “utterly intolerable” and demanding a ceasefire. The UK, along with France and Canada, had previously issued a joint declaration condemning Israel’s military expansion in Gaza and warning of “concrete actions” if Israel did not change course, including the immediate and unhindered provision of humanitarian aid.

In addition to halting trade talks, the UK has imposed sanctions on specific individuals and entities associated with illegal Israeli settlements in the West Bank. These include prominent settler leaders, unauthorised outposts, and organisations accused of promoting violence against Palestinians. Lammy stated that Israel’s failure to curb settler violence and its ongoing inaction are jeopardising both Palestinian communities and the prospects for a two-state solution.

The Israeli government responded sharply, accusing the UK of “anti-Israel obsession” and prioritising domestic politics over mutual economic interests. The Israeli Foreign Ministry called the sanctions “unjustified and regrettable,” asserting that such external pressure would not alter Israel’s security policies or its determination to defeat Hamas.

Prime Minister Benjamin Netanyahu also rebuked the UK, France, and Canada for their stance, accusing them of rewarding Hamas for the October 7, 2023 attacks and insisting that Israel would not end its military campaign until its security objectives were met. He reiterated Israel’s commitment to achieving “total victory” over Hamas and rejected what he described as international attempts to pressure Israel into a premature ceasefire.

This diplomatic rift occurs as the humanitarian crisis in Gaza deepens, with aid agencies warning of famine and the United Nations describing the limited aid allowed into Gaza as “a drop in the ocean” compared to what is needed. The UK’s actions are part of a broader trend among Western allies, with the European Union also signalling a review of its trade relations with Israel in response to the ongoing conflict.

The UK’s suspension of free trade negotiations and imposition of new sanctions reflect intensifying international condemnation of Israel’s military strategy in Gaza and its settlement policies in the West Bank. The British government has made clear that further actions may follow if Israel does not alter its approach, while reaffirming its commitment to a two-state solution and the delivery of humanitarian aid to Palestinians.

Based On ANI Report