As a new West Bank settlement plan gains steam, now is the time for governments to take multilateral economic action

Amid an unforgiving global news cycle – and as nations weigh their options in responding to the yet unbuilt West Bank settlement project that would “bury the idea of a Palestinian state” – a telling sanctions-related development in Israel passed largely unnoticed outside Israeli media. In Tel Aviv, the new year began with a protest by a violent extremist settler group that has faced UK sanctions since October 2024.

The trigger was a new Israeli banking directive, rushed out to placate Israel’s hardliners, that they said did too little to shield Israelis from international sanctions.