Australia is preparing a new round of targeted sanctions against Israeli settlers and settlement activity in the West Bank but has declined to join the United Kingdom and eleven other countries in implementing a broad legislative ban on goods produced in illegal Israeli settlements. Foreign Affairs Minister Penny Wong said Canberra has "concerns about unintended consequences" of a blanket trade ban for Australian businesses, Palestinians, and Israelis, while affirming that the Israeli government is "extinguishing the possibility of a two-state solution." The move comes as the UK, France, Canada, and nine European nations announced coordinated steps — including arms export bans and trade restrictions on settlement goods — marking one of the strongest collective Western responses yet to Israel's ongoing settlement expansion in the occupied West Bank.