Updated

The European Council, the EU body that sets the bloc's political direction, warned on October 16-17, 2026 that companies could face legal, economic and reputational consequences if they finance or participate in Israel's E1 settlement construction in the occupied West Bank. The warning came days before an October 19 deadline for bids on one of the E1 settlement construction tenders near Maale Adumim. The move adds to mounting European pressure on Israel over settlement expansion, coming amid broader criticism of Israeli policy in the West Bank and follows similar warnings from other European governments about consequences for continued settlement activity.