The diplomatic rift began after Foreign Secretary Ed Miliband imposed sanctions on goods from illegal Israeli settlements in the West Bank, which led Prime Minister Benjamin Netanyahu to brand the British government a rogue state. National Security Adviser Jonathan Powell conducted an undisclosed secret mission to Jerusalem last week to negotiate the agreement and prevent a full shutdown of the site, which predates the state of Israel by nearly 200 years. Meanwhile, Israeli banks have reportedly grown anxious over the potential impact of the UK's trade restrictions on their settlement expansion financing.
