Israel warns it will retaliate if UK imposes sanctions over settlement expansion

Israel's Foreign Minister Gideon Saar warned that Israel will retaliate if the UK imposes sanctions over potential settlement expansion in the West Bank. His comments came after UK Foreign Secretary Ed Miliband, in his first address to Parliament, promised a 'comprehensive reset' of policy on Israel, including examining how to stop UK companies from financing, constructing, or advertising new settlements. Saar told Ynet that if Britain acts against Israel, Israel will act against Britain, and that such action would be a big mistake. The dispute follows Israel's opening of tenders for 1,200 settlement homes in the E1 area east of Jerusalem, which has drawn international condemnation. Miliband called the plans illegal under international law and a red line that risks making a Palestinian state unviable. UK Prime Minister Andy Burnham warned the move could imperil the two-state solution. All settlements are illegal under international law, and Israel had previously held off on building in the area for decades.