Dr Brian Brivati, Executive Director, Britain Palestine Project
Action required of HM Government
Britain should give a lead now to like-minded international partners opposed to Israeli illegal settlements by warning that bidding for tenders to build E1 risks economic consequences for the bidder. There is urgency: tenders will be opened on 16 March.
Implications for Palestinians, International Law, and Commercial Actors
Tenders for 3,401 housing units in the as yet unbuilt E1 settlement will be awarded on 16th March 2026. Any individual, corporate body, financial institution, insurer, engineering firm, contractor, subcontractor, procurement intermediary or investor considering involvement in the E1 project should understand that participation carries clear legal, commercial and reputational risk. E1 has long been identified by successive UK governments and European partners as a red line because its construction would divide the West Bank in two and render a viable Palestinian state geographically impossible. The July 2024 Advisory Opinion of the International Court of Justice concluded that the occupation of Palestinian territory is unlawful and that UN Member States must not assist in maintaining that unlawful act.
Engagement in E1 construction may therefore place companies and financial actors at risk of:
- Exclusion from UK public contracts
- Loss of commercial eligibility in the UK market
- Enhanced regulatory scrutiny
- Reputational damage
- Exposure to restrictive measures should UK policy move from condemnation to enforcement.
Due diligence obligations are heightened in this context.
Effective End of the Two-State Option
Israeli control over the E1 corridor would irreversibly block Palestinian state contiguity and isolate East Jerusalem from the rest of the West Bank. The E1 settlement — located between Ma’ale Adumim and East Jerusalem — would physically divide the northern and southern West Bank. Senior Israeli ministers have stated publicly that E1 is intended to ensure there will be no Palestinian state. If constructed, E1 would consolidate a de facto one-state reality, with Palestinians confined to disconnected enclaves under Israeli dominance and without equal rights. Once tenders are awarded and construction begins, E1 becomes unstoppable.
Loss of Territorial Contiguity and Mobility
Construction in E1 would sever the northern and southern West Bank. Completion of Route 4370 would confine Palestinians to a sealed bypass corridor with no access to East Jerusalem or the E1/Ma’ale Adumim area.
This infrastructure creates two separate road systems:
- Open highways integrating settlements directly into Israel’s national network
- A walled corridor for Palestinian vehicles with no access in between
The geographic and economic coherence required for state viability would be irreparably damaged.
Legal and International Law Context
Settlement construction in E1 violates the Fourth Geneva Convention. The UK has repeatedly stated that settlements are illegal under international law. The International Court of Justice has advised that:
- The occupation since 1967 is unlawful
- It should cease
- States must not recognise or assist in maintaining this unlawful action.
Advancing E1 settlement construction is a direct challenge to international law. For commercial actors, this creates heightened legal and compliance risk. The duty of non-assistance applies not only to governments but to conduct that materially supports unlawful measures of de facto annexation.
From Condemnation to Consequences
Successive UK governments have condemned settlement expansion repeatedly, without altering Israeli policy.
Israel is accustomed to verbal criticism. The present risk to UK policy of two states therefore raises the question of consequences.
Two measures have been publicly proposed by senior former British diplomats:
- A UK Government warning to companies considering whether to engage in E1 construction that by doing so they pit at risk their business with the UK and like-minded partners.
- Banning UK trade in goods, services and investment with illegal Israeli settlements.
There is potential impact in sectors such as banking, insurance, construction services and procurement. These sectors should consider carefully the consequences of involvement in E1. UK policy movement from condemnation to enforcement would materially alter the commercial landscape.
Humanitarian and Protection Concerns
Palestinian communities in the E1 corridor face forcible transfer, enclosure, home demolitions, land confiscation, and rising settler violence. Bedouin communities such as Khan al-Ahmar face eviction. Changes to land registry control in Area C signal preparation for expanded settlement building. These Israeli policies are being implemented alongside severe restrictions on humanitarian access elsewhere in Palestine.
Strategic and Diplomatic Implications
The advancement of E1 and Route 4370 reflects a deliberate strategy to incorporate key parts of Area C of the West Bank into Israel, integrating infrastructure, altering legal regimes, and displacing Palestinians by force. These steps amount to de facto annexation of a strategic area of the West Bank. They create irreversible facts on the ground that close the window for a peaceful negotiated outcome. The UK has recognised the State of Palestine. Recognition carries practical implications for the recognising state. If the territorial viability of Palestine is destroyed, what price recognition? The central issue is consequences for illegality.
UK Policy Options – Consistent with International Law and Existing Commitments
- Publicly reaffirm that E1 construction and Route 4370 land seizures are illegal and incompatible with international law.
- Issue formal guidance warning that companies participating in E1 construction risk exclusion from UK public procurement and commercial engagement.
- Prohibit UK trade in goods, services and investment with Israeli settlements.
- Strengthen differentiation measures between Israel and settlements in trade, investment and procurement policy.
- Suspend trade concessions under the UK–Israel Trade and Partnership Agreement in light of Israeli breaches of its human rights clause.
- Press for an immediate halt to demolitions and displacement in E1, including protection for at-risk communities.
Bottom Line
E1 matters. If constructed, it will divide the West Bank and render Palestinian statehood geographically impossible. Commercial actors considering participation should be aware that involvement may carry significant legal, regulatory and reputational consequences. Recognition of Palestine must be matched with action to preserve its territorial viability. Without consequences, Israeli Government policy points toward a permanent one-state reality of unequal rights – apartheid – with all the legal, moral, political and security implications that word entails.
‘US no longer an honest broker’
Sir Vincent Fean, Trustee, on Times Radio
25 Feb 2026