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The United Kingdom announced new sanctions targeting Israeli settlements in the West Bank, a move that drew a warning from U.S. officials about potential economic consequences for London. The decision adds a new diplomatic rift between Washington and one of its closest allies amid ongoing Middle East tensions. The sanctions reflect growing international pressure over settlement expansion, but risk complicating U.S.-UK economic relations at a sensitive moment. Markets showed limited immediate reaction, though the dispute adds to a broader backdrop of geopolitical friction weighing on investor sentiment.