Britain and eleven other countries are moving against goods and money tied to illegal West Bank settlements, a setback for Israel and a win for Palestinians in those areas.

• The U.K. will ban imports from Israeli settlements, block services that finance or build them, and stop ads for settlement property.
• Britain also widened its arms ban to cover anything that helps the West Bank occupation, on top of the licenses already suspended over Gaza.
• Denmark, Finland, Iceland, Ireland, Norway, Poland, Portugal, Spain, and Sweden are joining the same trade ban.
• Israel hit back fast: closing the U.K. consulate in Jerusalem, ending British training of Palestinian Authority forces, and barring a dozen British politicians from entry.
• Washington is siding with Israel — the U.S. ambassador warned British firms could be shut out of business in states with anti-boycott laws.

Outlook: Expect more European governments to copy the settlement-only sanctions while the U.S. pushes back, leaving Britain caught between the two.