The United Kingdom is expected to announce new sanctions on goods and services produced in Israeli settlements in the occupied West Bank. Foreign Secretary Ed Miliband is expected to announce the measures in the UK Parliament. The move is part of what the British government describes as a major “reset” of its policy towards Israel. The UK says the sanctions are a response to the continued expansion of Israeli settlements in the West Bank. British officials argue that increasing settlement activity makes it harder to create an independent Palestinian state alongside Israel. Israeli settlements in the occupied West Bank are considered illegal under international law. Israel, however, disputes this position. The British government is expected to focus mainly on trade involving products made in settlements. Agricultural goods could be among the products affected. Officials have stressed that the measures would not amount to a complete boycott of Israel or a ban on normal business between Britain and Israel. Work and Pensions Secretary Pat McFadden said the UK still considers its economic and security relationship with Israel important. However, he said continued settlement expansion could make a future two-state solution increasingly difficult. The issue has become more urgent as Israel moves ahead with plans for about 1,200 new homes in an area known as E1, east of Jerusalem. The E1 area is strategically important because construction there could effectively divide the West Bank and make a future Palestinian state more difficult to establish. The UK has described the planned construction as unacceptable and destructive. Israel's government has strongly criticized Britain's expected action. Israeli Foreign Minister Gideon Saar previously warned that Israel could respond if Britain imposed sanctions. Israel's far-right Finance Minister Bezalel Smotrich has also called for Britain’s ambassador to Israel to be expelled. The United States has also opposed the planned British measures. US Ambassador to Israel Mike Huckabee said there would “without a doubt” be a US reaction if Britain proceeds. Huckabee suggested that US states could potentially take action against British companies. He warned that British businesses could face restrictions on doing business in some parts of the United States. The British government says its goal is not to damage relations with Israel but to put pressure on the Israeli government over settlement expansion. Meanwhile, violence against Palestinians in the West Bank has also increased. The United Nations has reported a rise in injuries linked to attacks by Israeli settlers. The UK says it supports a two-state solution, meaning an independent Palestinian state existing alongside Israel. British officials believe stronger international pressure is needed to keep that possibility alive. The expected sanctions are relatively limited in economic terms, but they could carry major political significance. They would show that Britain is prepared to take stronger action over Israeli settlement expansion, even if the move creates tensions with Israel and the United States.