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With the humanitarian crisis in Gaza intensifying and Israeli military actions drawing global condemnation, the UK has paused trade talks with Israel, while the EU is reassessing its broader political and economic ties.

The UK and EU officials cited deep concerns over the ongoing Israeli military campaign in Gaza and alarming incident in the occupied West Bank.

The moves come amid mounting international criticism over Israel’s handling of the humanitarian crisis in Gaza and a chilling event in which Israeli forces fired warning shots at an international diplomatic delegation visiting the Jenin refugee camp on May 21, 2025.

EU initiates trade review over Gaza atrocities

On May 20, 2025, European Union foreign ministers agreed to formally review the bloc’s trade ties with Israel, acting under mounting pressure from member states and civil society groups alarmed by what they describe as Israel’s disregard for human rights in Gaza.

Kaja Kallas, the EU’s High Representative for Foreign Affairs, announced the decision, saying it followed “a strong majority” of the 27 EU member states in favor of a trade review during a foreign ministers’ meeting in Brussels.

“What it tells is that the countries see that the situation in Gaza is untenable, and what we want is to really help the people, and what we want is to unblock the humanitarian aid so that it will reach the people,” Kallas told journalists.

The review targets the EU-Israel Association Agreement, which governs political, economic, and trade relations between the two sides. Under Article 2 of the agreement, cooperation is conditioned on “respect for human rights and democratic principles.”

Momentum for the review has grown as Israel resumed its offensive in Gaza following the collapse of a temporary ceasefire. Though Israel allowed 93 aid trucks into Gaza on Tuesday, Kallas called it a “drop in the ocean” compared to the needs of the suffering population.

Belgium’s foreign minister, Maxime Prevost, expressed strong support for the review, stating he had “no doubt” that Israel was violating human rights in Gaza and that the move could eventually lead to a full suspension of the agreement.

Seventeen EU member states backed the review, with the Netherlands leading the charge. Previous efforts by Ireland and Spain to push for a suspension had failed due to opposition from more pro-Israel countries. This week’s developments reflect a notable shift in EU consensus.

🇪🇺 The #EU said Tuesday it will review its trade deal with 🇮🇱 #Israel over alleged human rights abuses linked to the #Gaza aid blockade.

🇬🇧 In London, Foreign Secretary David Lammy called Israel’s aid restrictions and “expanding the war” in Gaza “indefensible” pic.twitter.com/62ZkkAj5p6

— FRANCE 24 English (@France24_en) May 21, 2025

However, internal EU divisions remain. Hungary, a staunch ally of Israel, blocked efforts to impose additional sanctions on Israeli settlers in the West Bank.

UK suspends free trade talks, sanctions settler outposts

Hours after the EU’s announcement, the United Kingdom followed suit with its own set of sanctions and a declaration that it was halting new trade negotiations with Israel.

Speaking in Parliament on Tuesday, UK Foreign Secretary David Lammy said the UK was taking steps to penalize Israeli settler violence in the West Bank.

“The Israeli government has a responsibility to intervene and halt these aggressive actions,” Lammy said. “Their consistent failure to act is putting Palestinian communities and the two-state solution in peril.”

The UK announced fresh sanctions against three individuals, two illegal settler outposts, and two organizations accused of supporting violence against Palestinians. While the UK’s existing trade agreement with Israel remains in effect, Lammy said no new negotiations would proceed under the current conditions.

Today, we have sanctioned more extremist settlers responsible for or supporting violence against Palestinian communities in the West Bank.

The UK has also paused Free Trade Agreement negotiations with Israel, effective immediately. pic.twitter.com/64CG5t0AQv

— Foreign, Commonwealth & Development Office (@FCDOGovUK) May 20, 2025

“The 11-week block on aid to Gaza has been cruel and indefensible,” Lammy added, echoing growing frustration in the international community.

UK Prime Minister Keir Starmer also criticized Israel’s conduct, calling the suffering of children in Gaza “utterly intolerable” and renewing his call for an immediate ceasefire.

Starmer, alongside French President Emmanuel Macron and Canadian Prime Minister Mark Carney, had issued a joint statement earlier this week declaring Israel’s announcement to allow basic food into Gaza as “wholly inadequate.” The leaders rejected a U.S.-Israeli proposal for an alternative aid distribution mechanism and insisted that Israel must coordinate directly with the United Nations.

“Permanent forced displacement is a breach of international humanitarian law,” the joint statement warned, condemning “the abhorrent language used recently by members of the Israeli Government.”

Israel responds with defiance

Israel reacted harshly to the UK’s announcement and the EU’s review. “Even prior to today’s announcement, the free trade agreement negotiations were not being advanced at all by the current UK government,” the Israeli Foreign Ministry said, calling the new sanctions “unjustified and regrettable.”

Amid mounting international pressure, Israel continues to deny any wrongdoing and maintains that its operations in Gaza are targeted at Hamas militants following the October 7, 2023, attacks.

However, domestic and international critics argue that the scale of the assault, including repeated strikes on civilian infrastructure, indicates collective punishment. Labour MP Zarah Sultana accused the UK of being “complicit” in the humanitarian disaster.

“This is not a tragic accident of war. It is the predictable result of a campaign of collective punishment waged with impunity,” she told reporters.

While some arms exports to Israel have been suspended, the UK has allowed shipments related to the F-35 fighter jet program to continue. According to a report by the Palestinian Youth Movement and other groups, over 8,600 separate munitions have been exported to Israel since the partial suspension began in September.

Israeli troops fire ‘warning shots’ at 25 diplomats visiting occupied West Bank

Tensions spiked further on Wednesday when Israeli soldiers fired “warning shots” towards a group of 25 diplomats who were visiting Jenin in the Israel-occupied West Bank on an official mission organized by the Palestinian Authority.

The delegation, which included representatives from over 20 countries, including the UK, France, Canada, Germany, Russia, China, and Brazil, was on an official humanitarian mission. Video footage captured the moment shots were fired as the delegation neared a gate. One diplomat is heard urging the group, “Be close to the wall, be close to the wall,” as they retreat.

European countries have demanded an explanation from Israel over the shooting at a delegation of diplomats traveling to Jenin in the West Bank.

According to the IDF, soldiers opened “warning fire” because the delegation had deviated from the approved route. The mission included… pic.twitter.com/6nTGHWlvpN

— NEXTA (@nexta_tv) May 21, 2025

The Palestinian Authority called the incident a “deliberate and unlawful act,” holding the Israeli government “fully and directly responsible.”

Kaja Kallas condemned the attack. “Any threats on diplomats’ lives are unacceptable. We call on Israel to investigate this incident and hold those accountable who are responsible.”

Italy’s Foreign Ministry summoned Israel’s ambassador in Rome, while Germany issued a strong condemnation, saying the incident “must be clarified immediately” and calling the firing “unprovoked.”

The Israeli military claimed the delegation had strayed from its approved route and entered a restricted zone during an ongoing operation in the camp, where over 100 buildings have been destroyed in recent weeks. “IDF soldiers operating in the area fired warning shots to distance them away,” the IDF said in a statement, adding that it had launched an investigation and would share its findings.

Outrage grows against Israeli army

The incident in Jenin and the broad diplomatic actions taken by the EU and UK mark a significant deterioration in Israel’s relationship with its closest Western allies. While the U.S. remains firmly supportive of Israel’s security operations, the growing fissures in Europe and the UK highlight a broader crisis in the international consensus that has traditionally shielded Israel from significant consequences.

As the humanitarian crisis in Gaza deepens, and with even longtime allies demanding accountability and restraint, Israel finds itself increasingly isolated and facing the prospect of long-term damage to its diplomatic and economic relations.