Britain freezes trade talks with Israel as Gaza offensive sparks diplomatic rift

Britain has announced a suspension of free trade negotiations with Israel amid mounting international concern over the intensifying Israeli military offensive in Gaza. Prime Minister Keir Starmer’s government made the announcement on Tuesday, citing deep alarm over the humanitarian crisis unfolding in the enclave.

 

Foreign Secretary David Lammy confirmed that the Israeli ambassador to the UK, Tzipi Hotovely, was formally summoned to explain Israel’s conduct in both Gaza and the West Bank. In a statement, the Foreign Office referenced concerns over the Israeli military escalation, ongoing settler violence and continued expansion of illegal settlements in Palestinian territories.

 

The decision marks a sharp deterioration in UK-Israeli relations, with diplomatic ties now at their lowest point in decades. Lammy said the UK could not proceed with trade talks while senior Israeli ministers used rhetoric suggesting the expulsion of Palestinians to "purify Gaza". He described such language as "repellent, monstrous and extremist".

 

Beyond the suspension of the free trade agreement, the UK is also reassessing its wider strategic relationship with Israel. The foreign secretary said Britain would not remain silent in the face of Israel’s refusal to facilitate aid to starving Palestinians, declaring that its treatment of civilians in Gaza was incompatible with British values and the foundations of the bilateral relationship.

 

In Brussels, the European Union followed suit, announcing a formal review of its own association agreement with Israel. EU foreign policy chief Kaja Kallas said the move was triggered by the continued blockade on humanitarian aid. Seventeen of the EU’s 27 member states reportedly supported the initiative. 

 

The agreement, which governs cooperation in areas such as trade and scientific research, includes a clause requiring respect for human rights and democratic principles. Kallas emphasised that while a majority of EU members backed the review, it was now incumbent on Israel to allow the free flow of humanitarian aid. 

 

Israel, however, responded angrily, accusing the EU of misunderstanding the situation and ignoring coordinated efforts, including a US-backed plan to deliver aid without benefiting Hamas. The Israeli Foreign Ministry asserted that pressure should be directed at Hamas, not at Israel.

 

The latest measure from the UK comes a day after it issued a formal warning against Israel jointly with France and Canada, threatening further action if Israel failed to halt its Gaza offensive and permit humanitarian supplies. However, despite international pressure, the Israeli Defence Forces declared their intent to expand operations in Gaza. 

 

In Parliament, Lammy struck a markedly sharper tone than in previous weeks, describing the looming incursion as "morally unjustifiable, wholly disproportionate and utterly counterproductive". As he addressed MPs, cries of "genocide" echoed from the backbenches. Lammy condemned recent plans by the Netanyahu government to push Palestinians into southern Gaza and restrict aid, saying: "We are now entering a dark new phase in this conflict." He cited Israeli minister Bezalel Smotrich’s remarks about “cleansing” Gaza and relocating Palestinians to third countries as evidence of extremist intent, branding such rhetoric as dangerous and monstrous.

 

While affirming Israel’s right to self-defence in the wake of the October 7 Hamas attacks, Lammy insisted that the country’s actions since were deeply troubling. He argued that no hostages would be freed through the creation of a humanitarian disaster. Instead, he painted a grim picture of Gaza’s civilian population—starving, displaced and traumatised—suffering through renewed bombardments with minimal humanitarian access.

 

The UN and the World Health Organisation have issued warnings of famine affecting hundreds of thousands. Lammy revealed that fewer than ten aid trucks had entered Gaza the previous day, despite the presence of more than 9,000 trucks ready to deliver supplies. He called on Prime Minister Benjamin Netanyahu to end the blockade immediately and allow unrestricted access to aid.

 

The UK’s sanctions included measures against three Israeli settlers and four entities accused of human rights abuses in the West Bank. One of the sanctioned individuals, Daniella Weiss, a veteran extremist and head of the Nachala movement, dismissed the penalties as “childish” and claimed they would have no effect. Weiss, who was recently featured in a BBC documentary, argued that Israel had been forced into war and vowed that the settler movement would not be deterred.

 

Other targets included settler groups linked to violent attacks on Palestinian civilians and property, such as Zohar Sabah, who had previously been sanctioned by the United States. Sanctions also affected outposts like Libi Construction and Coco’s Farm, both implicated in abuses against Palestinian communities.

 

Yet Lammy stopped short of sanctioning key members of Netanyahu’s cabinet, including Smotrich and far-right Interior Minister Itamar Ben-Gvir, although he said their inflammatory statements would be monitored closely.

 

The Israeli response was defiant. Foreign ministry spokesperson Oren Marmorstein accused the UK of harbouring an “anti-Israel obsession” and acting against its own economic interests. He dismissed the sanctions as unjustified, recalling that Britain’s mandate in Palestine ended 77 years ago and warning that Israel would not be swayed by outside pressure.

 

Netanyahu, meanwhile, told reporters that even Israel’s closest allies, including US senators, were beginning to express concern over the images emerging from Gaza. He warned of a “dangerous point” looming on the horizon if such images continued to circulate.

 

The starkest warning came from within Israel itself. Retired general and leader of the left-wing Democrats party, Yair Golan, cautioned that the state risked becoming a global pariah. He said Israel was waging war on civilians, killing indiscriminately, and aiming to displace an entire population. Netanyahu rejected these remarks as “outrageous incitement” against Israeli soldiers and the state.

 

IDF’s Chief of General Staff, General Eyal Zamir, pledged to expand operations and take control of additional areas in Gaza until Hamas was defeated. He claimed that the IDF operated in line with Israeli and international law, dismissing any accusations of misconduct as baseless.

 

Despite the growing political pressure, Lammy faced criticism from MPs across the Commons for not going further. Some called for a ban on arms exports to Israel and full diplomatic recognition of Palestine. Conservative MP Kit Malthouse questioned whether ministers were waiting for further civilian deaths before taking stronger action.

 

In response, Lammy rejected the idea that the Israeli government was indifferent to British criticism. He said the decision to impose further sanctions showed the UK was acting on principle and that the Netanyahu administration’s direction of travel could not go unchallenged.

 

As the Commons debate closed, Prime Minister Starmer underlined the gravity of the humanitarian crisis. “The current situation in which we are seeing the bombardment, including of children, and the prospect of starvation, is just intolerable,” he said. “We are coordinating with our allies on this.”

Middle East