Israeli Foreign Minister Gideon Sa'ar has warned that Israel will retaliate if the UK imposes sanctions over illegal settlement expansion in the occupied West Bank, as tensions between London and Tel Aviv escalate.
Speaking to Israeli outlet Ynet on Tuesday, Sa'ar accused the Labour government of "acting systematically against Israel," claiming it has already harmed defence exports and imposed sanctions on Israeli ministers.
"If Britain acts against Israel, Israel will act against Britain," Sa'ar said. "They will be making a big mistake."
He told Ynet that Israel is bracing for UK sanctions and preparing a response.
In June 2025, London sanctioned far-right Israeli ministers Itamar Ben Gvir and Bezalel Smotrich for inciting illegal settler violence against Palestinians during Israel's genocidal war in Gaza.
E1 dispute deepens rift
The latest escalation follows a heated exchange late last month between Sa'ar and UK Foreign Secretary David Lammy over Israel's plan to expand illegal settlements in Area E1 of the occupied West Bank.
The E1 project would connect occupied East Jerusalem to Ma'ale Adumim and other illegal settlements east of the city, cutting through land Palestinians seek for a future state.
Addressing British MPs on Tuesday, the Foreign Secretary said the government would impose a "comprehensive" package of sanctions in the coming weeks, warning that Israel's E1 plan "risks making a Palestinian state unviable."
"This government will not acquiesce in the destruction of the two-state solution," the Foreign Secretary said, vowing to set out further measures shortly.
Sa'ar rejected the statement outright, insisting Israel "will not be a passive victim of this policy" and will defend "its rights, its interests and its people."
Israel weighs retaliation options
Israeli right-wing outlet Ma'ariv reports that Israel has already warned London it would respond "substantially" to any sanctions targeting illegal settlements.
According to the Monday report, Israeli officials have yet to settle on the exact form of retaliation, with diplomatic, economic and other measures under consideration.
One option reportedly being weighed is expelling British officials from the US-led International Gaza Support Centre (IGSC), a body set up to monitor the Israel-Hamas ceasefire.
Israel took a similar step against the Netherlands last week, expelling Dutch officials from the centre after Amsterdam banned goods produced in illegal Israeli settlements. Earlier this year, Israel removed Spain from the IGSC, accusing Madrid of "obsessive anti-Israel bias."
Ma'ariv notes that Israeli officials are also weighing the risk that retaliation against London could damage long-term ties with British politicians, given expectations that a future Conservative or Reform UK-led government would take a friendlier stance towards Israel.
The newspaper adds that the US administration is relaying messages between the two governments and pressuring London to abandon the sanctions plan.
The dispute comes against the backdrop of Israel's expanding illegal settlement enterprise in the occupied West Bank, which the international community, including the UK, considers a violation of international law and a central obstacle to a two-state solution. London's threatened sanctions would mark one of the most significant Western measures against Israeli settlement policy to date, testing the UK's willingness to follow through despite Israeli threats of retaliation and reported US pressure to hold back.
