Violence and economic strangulation in the occupied West Bank are escalating, yet international attention remains focused on Gaza and Iran. The Guardian argues that Israel's allies, including the UK, must take decisive action to protect Palestinian lives and livelihoods, warning that without a functioning economy, a Palestinian state becomes impossible.
Ceasefire in Gaza Called a 'Cruel Illusion'
James Elder, a Unicef spokesman, described the Gaza ceasefire as a 'cruel and deadly illusion' on Friday. According to the Gaza health ministry, Israeli forces have killed over 1,000 Palestinians since the ceasefire was declared in October, including 265 children—an average of one child per day.
West Bank Violence and Economic Chokehold
The humanitarian crisis in Gaza has overshadowed escalating violence in the West Bank. Last week, a letter signed by former Israeli prime ministers, military chiefs, and security heads accused the government of 'doing nothing to eradicate Jewish terror.' Ehud Olmert, a former prime minister, accused Israel of 'an organized, systematic, state-funded campaign of ethnic cleansing and crimes against humanity,' with security forces assisting settler violence. The army chief reportedly described troops 'killing like we haven't killed since 1967.'
A report from the International Crisis Group highlights a dangerous economic campaign pushing the West Bank towards collapse. Finance Minister Bezalel Smotrich, head of a far-right pro-settler party, has vowed to 'bury the idea of Palestinian statehood' through 'economic strangulation.'
Economic Devastation Since October 2023
Since 1967, Israeli controls have prevented the West Bank from developing an autonomous economy. The chokehold tightened after the Hamas attacks on 7 October 2023. The Palestinian economy saw real GDP shrink from $17.8bn to $13.7bn in 2024, and nearly 300,000 Palestinians lost jobs in the West Bank and Israel.
Home demolitions and uprooting of olive trees are visible, but damage behind the scenes is deeper. Tightened movement restrictions have damaged agriculture, employment, and business. Few Palestinians are now permitted to work in Israel, though the security establishment reportedly believes restoring work permits could enhance safety. The withholding of customs revenues by Israel has crippled the Palestinian Authority, which paid employees only half their salaries last June. The Palestinian economy relies on two Israeli banks; repeated threats to the immunity and indemnity letters underpinning that relationship have even angered the US.
Illegal Settlement Funding and UK Inaction
An investigation by a rights group found that Israeli exporters regularly hide the origin of produce grown in occupied Palestine to qualify for unlawful tax breaks. The Charity Commission is investigating after Labour MP Melanie Ward stated that charities in England and Wales have donated at least £28m to illegal settlements. An Israeli real estate event in London appeared to advertise land in settlements.
This contrast highlights the failure of Israel's allies to take substantive action. Sanctions against violent settlers and their enablers are insufficient, yet the UK has shied away from banning trade with illegal settlements or other decisive measures. MPs rightly call for more. Palestinian livelihoods, as well as lives, must be protected.
