The United Kingdom is set to announce trade restrictions on Israeli settlements in the West Bank, a move expected to include an embargo on goods and some services and reported as an escalation under new Prime Minister Andy Burnham's firmer approach to the conflict. The step is drawing sharp criticism from Israeli and American officials, potentially straining relations with the Trump administration, which has strongly backed Israel, and coming just a day after Burnham spoke by phone with President Trump.

The measures are expected to be formally announced on Tuesday by Foreign Secretary Ed Miliband, who has pledged a "comprehensive reset" of policy towards the settlements and cited the E1 settlement project near Jerusalem as a "red line". Israeli Finance Minister Bezalel Smotrich called for the British ambassador's expulsion, while National Security Minister Itamar Ben-Gvir urged retaliation, including possible sanctions on Britain and recognition of Argentine sovereignty over the Falkland Islands. A US State Department spokesperson said Washington was "tracking the plans closely", and Burnham has joined Canada, France, Germany and Italy in condemning Israel's E1 expansion as a threat to a future Palestinian state.