What’s happening: Investment Minister, Lord Stockwood, assured the House of Lords that the UK Government is waiting for phase 2 of the Gaza ceasefire agreement to resume trade talks with Israel.

• Lord Stockwood made this announcement in the Lords Grand Committee debate dedicated to trade with Israel last Thursday in response to a question from Lord Leigh (Conservative).
• He highlighted that: “Israel’s innovative, high-tech economy is well aligned with our own, providing an avenue for critical imports in key sectors mentioned, such as healthcare, medicines for respiratory care, neurology, oncology and pain management to support the treatment of chronic and high-burden diseases.”
• The debate was brought by Lord Austin, a crossbencher and former Labour MP and minister during Gordon Brown’s government, who currently serves as trade envoy to Israel.“Israel supplies one in seven NHS prescriptions, which save the health service nearly £3 billion every year. It is a global leader in digital health, biotech and medical innovation, delivering cutting-edge breakthroughs in early cancer detection, gene editing, Alzheimer’s research and cardiovascular treatment,” highlighted Lord Austin in his contribution.
• Lord Austin also emphasised Israel’s contribution to the UK’s security: “Israel is also a key defence and security partner. It is the third-largest supplier of arms to the UK, and Israeli military equipment has saved the lives of British forces in combat zones. Its technology provides crucial support for the Armed Forces, and Israeli intelligence has helped prevent terror attacks here in Britain. It is obvious, in the face of Putin’s aggression, that we need to strengthen Britain’s air and cyber defences, and we are using Israel’s expertise in cyber security for that.”
• This point was further expanded by Lord Leigh who pointed out: “In my opinion the UK is very unprepared for AI-driven drone warfare, but Israel has anticipated that future and we need to try to benefit from those skills. Unfortunately, banning arms sales to Israel has been extremely unhelpful at this time and now needs to be reversed, as does the ludicrous decision to ban Israeli defence officials from the Royal College of Defence Studies and then to ban Israel defence firms from a major London arms fair.”
• Lord Leigh also warned that “Boycotts create a chilling effect: they deter investment, research and partnership far beyond their formal scope, and in fact, they nurture violence, extremism and antisemitism. The attempt to normalise the delegitimisation of Israel is pure antisemitism undertaken by bad actors with dangerous motives.”
• This sentiment was echoed by multiple contributing member, which were subsequently assured by Lord Stockwood that: “the UK Government are committed to promoting our trade and business ties with Israel and strongly oppose boycotts.”

Context: The UK and Israel signed a trade and partnership agreement in 2019 to ensure continuity of trade relations following Brexit. In 2021, the two countries signed a Memorandum of Understanding in which they declared a shared interest in negotiating a free trade agreement. These negotiations were paused in May 2025 by the UK government.

• The UK government’s decision to pause the trade talks was justified by then Foreign Secretary David Lammy as a reaction to the war in Gaza.
• The same justification was used by the government when it suspended around 30 arms export licenses to Israel in September 2024.
• Known as the ‘Start-up Nation’ Israeli companies contribute to the UK economy in many sectors, especially in healthcare, software engineering, fintech, cybersecurity, AI, and defence supporting thousands high-skilled jobs across the UK and bringing in cutting-edge solution to the UK consumers.
• Israel’s contribution to the UK economy was recently highlighted by the UK Ambassador to Israel, Simon Walter, who wrote to CTECH that “Israel rose to eighth place in Europe in terms of investment in the UK per capita in 2025, up from tenth place last year. Over the past five years, more than 300 Israeli companies have expanded into the UK, generating 4,000 jobs and almost £1 billion in investment. Israeli investment created 871 jobs and contributed £173 million to the UK economy in the last year alone, as trade increased again, despite the Gaza war and campaigns to boycott Israel.”
• According to the UK Department of Business and Trade, total trade in goods and services between the UK and Israel reached £6.2 billion in the year to the end of Q2 2025. This represents an increase of 3.7% or £218 million in current prices from the previous period.UK companies’ top exports to Israel account for medicinal and pharmaceutical products worth £284.5 million, cars worth £191.1 million and mechanical power generators worth £148.8 million.
• Israeli businesses operating in the UK face pressure from the BDS movement, as well as harassment and, in some cases, violent attacks by extremist groups, including Palestine Action, which was proscribed as a terrorist organisation in June last year.

Looking ahead: Israel continues to work with the Trump administration to finalise phase one of the Gaza ceasefire agreement, despite persistent violations by Hamas.

• Progression to phase two remains uncertain. Key obstacles include the remains of Israeli policeman Ran Gvili, the last Israeli hostage, still being held in Gaza, and the refusal by Hamas to honour the agreement by laying down its weapons, despite having committed to do both under the ceasefire terms.
• It therefore remains unclear if in absence of any progress will be the UK government willing to reopen the trade talks with Israel.

What’s happening: On Monday afternoon, Prime Minister Netanyahu will host meetings with the Prime Minister of Greece Kyriakos Mitsotakis and Cypriot President Nikos Christodoulides.

• Netanyahu will conduct bilateral meetings with both leaders separately, followed by a trilateral meeting following held and joint statements to the press.
• The trilateral summit is expected to focus on defence and security issues as well as energy connectivity, civil protection and innovation.
• High on the agenda will be  strengthening of countire’s security cooperation, including the possibility of establishing a joint rapid-response military force that will be active in the Eastern Mediterranean, intended to present a united front against Turkey’s aggressive posture.
• According to Greek media reports, the latest tensions have included Turkish jets infiltrating Greek airspace, which led to the Greek air force scrambling planes in response.

Context: This trilateral summit is the latest gathering of the three leaders that have been increasing cooperation in recent years.        

• Israel already provides Greece with advanced weapons systems and a large deal was recently approved for precise munitions. The two countries are currently discussing another large deal for more Israeli weapons.
• In the lead-up to the summit Israel denied reports about the establishment of a joint rapid-response force. However each nation wants to increase their military coordination which includes joint training exercises and sending a message to deter the Turks.
• Israel-Greece relations have been strong for several years, with one senior Israeli official involved in the talks describing it as “intimate”. “Every year, Israel and Greece hold 40 joint exercises, meetings to exchange information, and more. There is always room to broaden cooperation, but the report in Greece about a rapid response force is not true and there is no feasibility of such a force.”
• The leaders will also discuss the US-led IMEC (India-Middle East-Europe Economic Corridor). The initiative that looks to build an economic corridor that will link India, the Middle East, Israel and Europe by means of advanced transportation and energy infrastructure as well as increasing cooperation in the spheres of trade, economy, energy and security, including a train network, cables and energy.
• On the energy front there appears two issues:
  • Cooperation over off shore natural gas fields, specifically the very large Aphrodite gas field, 85% of which belongs to Cyprus and 15% to Israel. Cyprus is considering building a gas facility that will rival Egypt’s.
  • Exploring the possibility of connecting themselves to an East Med electricity grid – via an underwater electricity cable. Greece is building an electricity line between Crete and Cyprus, and once Cyprus is connected to Israel this will effectively link Israel to the European electricity grid. However, many analysts are sceptical that such a scheme is feasible.
• A further area of cooperation will see the establishment of a coordination centre to deal with civilian disasters such as fires and preparations for large earthquakes.
• Israel views its ties with Greece and Cyprus as a strategic partnership, that strengthens regional stability and addresses each nation’s specific security challenges.
• At the same time, Israel is careful to refer to Turkey as a rival rather than as an enemy.  
• Last week the US Ambassador to Turkey (and special envoy to Syria) Tom Barrack visited Israel. Israel’s message to Turkey was apparently conciliatory, emphasising that both sides should make an effort to prevent the ongoing escalation in tensions.
• Israeli-Turkish tensions are centred around Syria and Gaza. Ever since the fall of the Assad regime, Turkey has been making a clear effort to expand and to deepen its presence in Syria. This includes plans to deploy radars and air-defence batteries, which could restrict Israel’s aerial freedom of operation.
• Israel has so far imposed a veto on any Turkish military presence in the Gaza Strip as part of the International Stabilisation Force. Israel is concerned that any Turkish involvement will restrict Israel’s ability to take military action to prevent Hamas from recovering militarily. In addition, there are concerns that, since Erdoğan is sympathetic towards Hamas, Turkish forces might even help Hamas to smuggle and/or manufacture weapons.
• The sides will also discuss the role Cyprus and Greece are to play in the day after in Gaza. Greek Prime Minister Mitsotakis is also expected to visit Ramallah and meet the chairman of the Palestinian Authority, Mahmoud Abbas. Ahead of the trip the Greek government reemphasised their commitment to the two-state solution. The country wants to act as an honest brokers and contribute to the Gaza peace plan including, humanitarian assistance, reconstruction and a possible participation in the International Stabilisation Force.

Looking ahead: From the Israeli side no decision has been made to establish a joint rapid-response force. However, it is understood that the IDF are exploring a preliminary feasibility study. 

• With a range of shared interests across the civilian and security spectrum, trilateral cooperation is expected to advance and increase.

What’s happened: Spearheaded by the US and launched last week at the summit in Washington DC, Pax Silica is a strategic initiative focused on securing and strengthening AI and technology supply chain.

• Alongside the US and Israel, the summit convened stakeholders of the United Kingdom, Japan, South Korea, Singapore, the Netherlands, the UAE, and Australia, all representing nations with a major presence in the fast-growing AI industry.
• The summit received also a guest contribution from Taiwan, the European Union, Canada, and the OECD.
• The participants of the newly formed Pax Silica alliance committed to working in partnership in areas such as:
  • Strengthening the supply chains of critical minerals, chips, and energy.
  • Establishing joint ventures and shared strategic investments.
  • Protecting sensitive technologies and infrastructures from access or control by hostile nations.
  • Establishing a trustworthy technological ecosystem – including ICT systems, fibre optic cables, data centres, foundational models, and AI applications.
• Israel was represented at the summit by Economic Advisor to the Prime Minister, Prof. Avi Simhon, who noted: “Together with our international partners, we are working to fortify the global AI industry, strengthen the resilience of supply chains, and ensure the economic and security prosperity of the participating countries and their citizens.”  

Context: While not explicitly stated, the initiative aligns with the broader strategy of the Trump administration to counter China and its influence, and to strengthen the US position in high-tech sectors, particularly the rapidly expanding AI industry.

• This strategic dimension of the initiative was highlighted by the US Under Secretary for Economic Affairs Jacob Helberg who said: “If the 20th century ran on oil and steel, the 21st century runs on compute and the minerals that feed it. This historic declaration hails a new economic security consensus ensuring aligned partners build the AI ecosystem of tomorrow—from energy and critical minerals to high-end manufacturing and models.”
• The US has explicitly stated that it views AI as a transformative force for its long-term prosperity. Donald Trump has also previously described economic security as an integral part of national security and has articulated the US ambition to win the AI race. This initiative should be viewed as part of that ambition.
• According to the US State Department, the summit participants explored opportunities to partner on flagship projects across global technology stacks, including connectivity and data infrastructure, compute and semiconductors, advanced manufacturing, logistics, mineral refining and processing, and energy.
• Furthermore, the initiative responds among other to a “growing demand from partners to deepen economic and technology cooperation with the United States” and to “the importance of fair market practices and policy coordination to protect sensitive technologies and critical infrastructure.”
• Israel leads the world in billion-dollar start-up unicorns, pioneering innovation across sectors including green tech, healthcare, agriculture, AI and fintech. Known as the ‘Start-up Nation’, Israel has been the birthplace of companies such as satellite navigation provider Waze, cybersecurity firm Check Point, enterprise-grade AI developer AI21 Labs, the popular trading platform eToro, and project-management software provider Monday.com.
• Earlier this month, Prime Minister Benjamin Netanyahu said of emerging technology, “I think there’s another revolution coming,” and described it, alongside the “achievement of a broader peace”, as one of the two enormous tasks he intends to focus on going forward.
• Last month, Israel proposed a site in Kiryat Tivon, in the north of the country near Haifa, to host Nvidia’s multibillion-dollar technology campus. The US chip manufacturer, currently the world’s most valuable publicly listed company, is seeking to build a 160,000-square-metre R&D hub creating up to 8,000 jobs.
• The company already has a strong presence in Israel, which hosts its largest operations outside the US. Nvidia employs in Israel over 5,000 people across seven R&D centres in cities including Tel Aviv, Jerusalem and Beersheba.
• Israeli Ministry of Economy released its latest forecast yesterday which expects the Israeli exports to grow to $160 billion (approximately £121 billion), which represents an increase of approximately 3% compared to 2024.
• According to initial estimates based on Central Bureau of Statistics (CBS) data, the exports are primarily driven by services, which already contribute by more than half of total Israeli exports and are projected to grow by 9% reaching $101 billion, up from $92.7 billion in 2024.
• Israeli Ministry of Economy notes that: “The growth in this sector continues at an impressive pace and emphasises the expansion of activity in the industry, primarily High-Tech services such as software, computing, and research and development, and its significant contribution to Israel’s economic stability.”

Looking ahead: Under Secretary Helberg instructed US diplomats in Washington and overseas to translate the summit’s discussions into action by identifying infrastructure projects and coordinating economic security practices.

• Helberg also stated that the pact is open to new members and that he expects more nations to join as early as Q1 2026.

What’s happened: As of this morning the number of people who were murdered in the Sydney terror attack stands at 15. Another 40 people were wounded.

• The attack targeted Australian Jews celebrating a Chabad Chanukah party on Bondi Beach.
• Following the attack, President Herzog sent his “deepest condolences” to the Jewish community of Australia. He added, “These vile terrorists deliberately targeted innocent Jewish families celebrating the first night of Chanukkah… our message is clear: the Chanukah lights must go on and will be lit all over the world, especially in Bondi Beach in Sydney and all over Australia. In Australia, in Israel, and around the world, the Jewish people — the eternal people — will continue to bring light into the world and overcome this terrible darkness.”
• Prime Minister Starmer noted, “Chanukah should be a time of celebration and joy. The news that the Bondi beach attack was an antisemitic terrorist attack against Jewish families at a Chanukah event is sickening….The United Kingdom will always stand with Australia and the Jewish community.” He added that his government was working with the CST (Community Security Trust) on the policing of Chanukah events.
• The prime minister later posted a photo lighting the Chanukah candles alongside his wife with his message: “As we light the Chanukiah, our thoughts and prayers are with those murdered in the terrorist attack on Bondi beach today, their loved ones and the whole Jewish community. Light will always win over darkness.” He further noted, “Antisemitism has no place in our society. We stand in solidarity with the Jewish community, today and every day.”
• Later in Jerusalem President Herzog lit the first night candle alongside the family of Staff Sgt. Ran Gvili at the President’s Residence in Jerusalem. The President stated, “Ran is a police officer who fell heroically in battle on October 7th. 800 days later, Ran is now the last hostage still being held by murderous terrorists in Gaza. We renew our call for Ran to be released immediately and returned home to his dear family for dignified burial!”

Context: For many Jews around the world a deadly attack of this nature has felt inevitable following the increased levels of antisemitism, particularly since the October 7 massacre.  

• Jewish community organisations in both Australia and the UK have been warning politicians for two years that the violent rhetoric on weekly marches in our cities, would escalate to physical violence.
• Following the Heaton Park Synagogue murders in Manchester, the UK government made commitments to changes in the law, to protect places of worship and assess cumulative impact of marches. Neither have been implemented.
• The terrorist attackers have been identified as Sajid and Navid Akram, a father and son aged 24 and 50 of Pakistani origin. It remains unclear if they acted independently or if they received training and support.  
• Pakistani nationals have carried out attacks in the past, such as in the 2008 terror attack in Mumbai that – like in Sydney – also targeted a Chabad event. Similarly Pakistani nationals, serving as Iranian proxies were involved in a foiled terrorist attack at a Chabad House in Athens in October 2024.
• Over the last few months the Mossad had warned the Australian government that Iran and other malign groups were planning attacks.
• There is some speculation that Iran carried out a revenge attack against Jews at an iconic Australian tourist site following recent Australian action against the Islamic Republic. Other reports have suggested the terrorists may have identified with ISIS.    
• This deadly attack followed months of anti-Israel public protests, including chants to “globalise the intifada.” This attack is viewed as a sadly predictable result of inaction against those protests.
• Despite the welcome words of Prime Minister Starmer there is heightened concern that not enough is being done to counter the growing spread of antisemitic rhetoric and there are ongoing concerns for the safety of the Jewish community.
• In Australia this attack followed a huge increase in antisemitic attacks that included a firebomb attack on a Melbourne synagogue a year ago.
• Yesterday Prime Minister Netanyahu noted his previous warnings to the Australian government that its policy was “promoting and encouraging antisemitism in Australia,” adding that its call for a Palestinian state ” pours fuel on the antisemitic fire…rewards Hamas terrorists [and] emboldens those who menace Australian Jews and encourages the Jew hatred now stalking your streets.” Netanyahu emphasised that “Antisemitism is a cancer. It spreads when leaders stay silent; it retreats when leaders act. I call upon you to replace weakness with action, appeasement with resolve.”
• The prime minister also noted that it was a brave Muslim man that heroically disarmed one of the terrorists.      
• The festival of Chanukah, meaning “dedication” in Hebrew, commemorates both the 164 BCE rededication of the Second Temple in Jerusalem after its desecration by the ruling Seleucid (Syrian Greek) Kingdom, under Antiochus IV, and the re-establishment of religious freedom for the Jewish people after a period of harsh repression.
• The success of the popular revolt led by Judah Maccabee and his brothers has ever since symbolised the fight for liberty and freedom against overwhelming odds.
• Chabad is a religious Jewish movement synonymous with outreach programmes for Jews of all backgrounds.

Looking ahead: Israel’s National Security Council has issued warning over the possibility that terror supporters will be inspired by this event and try to carry out copy-cat attacks.

• As a result, the NSC have issued a set of recommendations that include avoiding “unsecured public events, including events at synagogues, Chabad houses, Chanukah parties… Be vigilant when near Jewish/Israeli locations, and report to the security forces if anything out of the ordinary is detected (a suspicious person or object).”
• As the UK prepares for its public Chanukah celebrations this week, the Jewish community is on heightened alert.