Columnist warns of risk of expanded sanctions against Israel — Jerusalem Post
Israel may face tighter economic and financial restrictions if sanctions against activity in Israeli settlements in the West Bank are extended to companies, banks and other related entities. This assessment was made by former Jerusalem Post editor-in-chief Yaakov Katz in a Jerusalem Post column.
The author noted that on September 8, the United Kingdom, France and Canada announced plans to impose restrictions on trade in goods from settlements, as well as measures against companies and individuals providing services for their development, including in construction, infrastructure and financing. British legislation to implement such restrictions is expected to require several months.
Risk of restrictions expanding
For now, the measures are intended to distinguish Israel within the “Green Line” from Israeli activity beyond it. The British government, the column notes, has explicitly stated that the planned import ban should not affect Israel within its recognized borders.
At the same time, Katz believes that the restrictions may expand. In his view, not only settlement developers but also companies building roads, lending banks and foreign equipment suppliers could potentially face sanctions risk. The author links the possible increase in pressure to the prospect of Israel’s formal annexation of part of the West Bank after the October 27 election.
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Katz also recalled that the Joe Biden administration imposed sanctions in 2024 on Israeli settlers accused of violence and destabilizing activities in the West Bank. Donald Trump lifted those sanctions after taking office in January 2025. Separately, the author mentioned sanctions imposed by the United Kingdom and some European countries against Israel’s Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben-Gvir.
Dependence on the European market
The column emphasizes that the European Union is Israel’s largest trading partner. In 2025, trade turnover between Israel and the EU amounted to €43.3 billion; the EU accounted for 33.1% of Israeli imports and 29.4% of exports.
According to Katz, a large-scale sanctions regime could affect foreign investment, the operations of international companies and Israel’s technology sector. He urged the country to diversify its trade and diplomatic ties, including by working more actively with Asian states, and to pay greater attention to public diplomacy.
