UK readies sanctions against Israel to deter proposed illegal West Bank settlement

Move comes as 137 Labour MPs sign letter demanding urgent, concrete action' to stop settler violence

The UK Foreign Office and a group of western countries are due to announce a package of sanctions against Israel this week designed to deter companies from becoming involved in a proposed West Bank settlement that would split the territory in two and render the concept of a two-state solution near impossible.

Nine countries including France, the UK and Australia have warned that settlement violence must stop and no company should be involved in what is known as the E1 development.