David Lammy has insisted imposing a full arms embargo on Israel would be a “mistake” but left the door open to further sanctions over settler violence in the West Bank.

The Foreign Secretary suggested suspending export licences that could be used by Israel against Houthi rebels and other proxies in the region would lead to a “wider war”.

But speaking at a Labour Party conference fringe event on Sunday, he said he was in talks with G7 allies about responding to “deeply” concerning “escalatory behaviour” in the occupied region.

“I’m deeply, deeply worried by the growing violence and settler violence that we see in the West Bank,” Mr Lammy said.

“I’m in discussions with G7 partners, particular European partners on that. I’m not announcing further sanctions today, but that is kept under close review.”

It comes after Israeli president Isaac Herzog earlier on Sunday expressed disappointment in the UK’s changing position towards the country.

He told Sunday Morning with Trevor Phillips on Sky News: “We have outstanding relations with the British Government. We have outstanding relations with the people of Britain.

“I have, personally, very close affinity with His Majesty’s Government and with Britain at large, but we also have to understand that between friends we expect friends and allies to be there for us all the time, as we are for them.

“There is a sense of disappointment in Israel and I have expressed it to my friends.”

Israeli president Isaac Herzog on a visit to the UK
Israeli president Isaac Herzog has expressed disappointment in the UK’s changing position towards the country (Justin Tallis/PA)

Britain has subjected groups and individuals linked to violence against Palestinian communities in the West Bank to sanctions including asset freezes and travel bans in recent months.

Mr Lammy’s intervention is the latest in a series of warnings over a rise in unrest in the region since last October.

Elsewhere in the discussion, the Foreign Secretary was pressed by delegates on the Government’s position on arms exports, which have proven a sticking point within party ranks.

The UK has suspended some export licences to Israel over concerns the country is violating international humanitarian law in Gaza, but some have argued stronger action is needed including a full arms embargo.

Questioned on whether such a measure would be introduced, Mr Lammy said: “I don’t think it would be quite right to suspend licences, for example, that the Israelis could use in relation to the Houthis, that Israel may need to use in relation to the challenges it has with other proxies in the area.

“I think that would be a mistake. It would lead to a wider war and an escalation that we here in the UK are committed to stopping, so I’m afraid I disagree with that position.”