On Tuesday, the United Kingdom banned trade with Israeli settlements in the occupied West Bank, a region it accuses of "ethnic cleansing" by "settler terrorists," marking a notable shift in Britain's stance toward a long-standing ally.

France and Canada have declared that they will implement comparable measures to curb the expansion of settlements and the surge in violence, which threaten to make the creation of a viable Palestinian state unfeasible.

Israel reacted with indignation, announcing that it would shut down the British consulate in Jerusalem.

Foreign Secretary Ed Miliband announced that the U.K. will ban imports of all goods originating from the settlements and will restrict companies from offering services to them, covering areas such as financing, construction, infrastructure, real estate, and advertising.

“I do not believe the British public would wish us to endorse the occupation by accepting goods originating from settlements in our shops and supermarkets,” Miliband stated.

In a joint statement, British Prime Minister Andy Burnham, French President Emmanuel Macron and Canadian Prime Minister Mark Carney asserted that settlement expansion and settler violence in the West Bank “pose a direct and urgent threat” to the two-state solution, adding that they had resolved to intervene “before it is too late.”

The economic impact is expected to be limited, as the settlements export only small amounts of mostly agricultural goods.

However, the move symbolically expresses displeasure with Israel from some of its closest allies, and it further indicates the Israeli government's growing isolation due to the Gaza war.

Miliband expressed that he feels “a deep sense of shame about what has unfolded in Palestine under the eyes of the international community.”

“We will not countenance the dismantling of the two-state solution,” he stated.

Israeli Foreign Minister Gideon Sa’ar condemned the move as “despicable.”

He said Israel would expel U.K. representatives from a joint military center that monitors the Gaza ceasefire and would end U.K. training of the Palestinian Authority’s security forces in the West Bank.

Additionally, Israel barred entry to a dozen British lawmakers and other U.K. citizens whom Sa’ar described as “involved in antisemitic and anti-Israel activity.”

Under the ultranationalist administration of Israeli Prime Minister Benjamin Netanyahu, settlement expansion in the West Bank — territory captured by Israel during the 1967 Middle East war — has intensified markedly.

Netanyahu’s government regards the West Bank as the Jewish people’s biblical and ancestral homeland and firmly rejects the establishment of a Palestinian state.

The international community overwhelmingly regards such construction as unlawful.

Britain and other nations have expressed particular apprehension regarding the E1 settlement project endorsed by Israel, which would effectively bisect the territory.

There have been marked increases in attacks by settlers on Palestinians, evictions from Palestinian towns, Israeli military operations and checkpoints that choke freedom of movement, as well as several Palestinian attacks on Israelis.

"The British government acknowledges that ethnic cleansing of Palestinians is occurring in parts of the West Bank, perpetrated by settler terrorists," Miliband said.

He noted that there had been "houses demolished, roads and public infrastructure destroyed, and families displaced from their homes."

Miliband stated that the trade ban would come into effect within six to nine months, adding that Denmark, Finland, Iceland, Poland, Portugal, and Sweden have all committed to “support further action.”

According to him, the Netherlands, Ireland, Belgium, Spain, and Norway have either prohibited goods originating from settlements or are currently in the process of implementing such bans.

Miliband also tightened Britain's embargo on weapons sales to Israel for use in Gaza, expanding it to include arms "that materially contribute to the occupation" of Palestinian territories.

The United Kingdom's recognition of Palestinian statehood last year was an attempt to reinvigorate the flagging pursuit of a two-state solution.

In a shift in Britain’s stance, Miliband stated on Tuesday that the U.K. deems Israel’s occupation of the West Bank—not merely the settlements—to be unlawful.

The new role is apt to be well-received by numerous Labour supporters and parliamentarians, who have pressed the administration to impose more stringent measures on Israel and to bolster its backing for the Palestinians.

However, some voiced concern that the sanctions could bolster Netanyahu's position—he is facing a tough re-election battle in October—or lead to attacks on British Jews.

The U.K.'s chief rabbi, Ephraim Mirvis, called it "a dark day for British Jews."

Tom Tugendhat, the opposition Conservative Party's foreign affairs spokesman, said that "turning Israel into a pariah will risk sectarian division in our own country and risk a further rise in antisemitic violence on our own streets."

Before Miliband's announcement, Itamar Ben-Gvir, Israel's hard-line public security minister and a settler leader, urged Netanyahu to recognize Argentina's claim to the Falkland Islands, a British overseas territory in the South Atlantic that Argentina calls the Malvinas.

Israeli President Isaac Herzog characterized the ban as “a grave miscalculation, a decision that will fall on the wrong side of history.”

"In the present situation, any such move would be a blatant intrusion into the democratic elections of an independent nation," he said.

The move also drew criticism from the U.S. ambassador to Israel, Mike Huckabee, a longstanding supporter of the settlements, who called it “discrimination against the Jewish people.”

He warned that the U.K. could face “repercussions or retaliations” from the U.S. if it went ahead with the sanctions.

Several U.S. states have enacted legislation prohibiting contracts or investments with enterprises that boycott Israeli firms, including those situated in the West Bank.

Burnham’s office confirmed that he had spoken with U.S. President Donald Trump on Monday, outlining “the U.K.’s commitment to working toward peace and security in the region” and the pursuit of a two-state solution.

No details were provided regarding Trump’s response.

Miliband, whose parents fled to the U.K. as refugees from the Nazis, told lawmakers that he spoke “as a proud British Jew” and a supporter of Israel.

“Our grievance is not with the people of Israel, to whom the U.K. is inextricably bound,” Miliband asserted.

“Rather, our grievance lies with the actions of its government.”