🚨 EUROPE’S SANCTIONS THREAT PUTS ISRAEL’S SETTLEMENT ECONOMY UNDER PRESSURE JERUSALEM, ISRAEL - European governments are no longer limiting their response to symbolic condemnations or travel bans on individual settlers. The focus is moving toward commercial ties, which changes the calculation for banks, insurers, importers and multinational companies that have generally treated settlement activity as a political issue rather than a business risk. Israel can absorb limited restrictions on settlement goods because the direct trade volumes are relatively small. The bigger concern is uncertainty. Companies tend to withdraw from legally disputed markets before sanctions become severe, especially when compliance costs and reputational risks begin to rise. The choices facing European governments also become narrower once trade measures start. If settlement construction continues despite new restrictions, pressure will build for broader enforcement targeting financing, investment and services rather than only physical goods. For settlement businesses, the immediate challenge is access to foreign markets. For European leaders, the remaining incentive is to create enough economic friction to influence future construction decisions without severing wider economic relations with Israel. Writer: Brij