Jessica JohnsonOn 20 March 2026, Donald Trump's latest statements on Israel are generating 2,000+ searches per hour in the UK — making it one of the most-searched political stories of the week. The geopolitical backdrop is sharp: US-Israel relations are at a pivotal moment, with Trump signalling potential shifts in sanctions policy, arms deals, and regional diplomatic positioning. For UK businesses with exposure to the Middle East, this is not a story to file under "politics." It has direct commercial and legal implications.
What is happening between Trump and Israel in March 2026?
Following Trump's re-election, US Middle East policy has undergone significant recalibration. In March 2026, discussions around potential US-brokered ceasefire deals, sanctions relief for certain regional actors, and defence partnership announcements have kept the Trump-Israel relationship firmly in the news cycle.
UK businesses are watching for three specific policy shifts that carry direct risk:
Sanctions volatility: Changes to US sanctions designations affecting Iran, Hezbollah-linked entities, or other regional actors create compliance landmines for UK firms operating in the region. UK sanctions (OFSI-administered) often track US designations, but not always — and the gaps create legal grey areas.
Supply chain exposure: UK companies sourcing goods or services from or through the Middle East — especially in construction, tech, energy, and professional services — need to assess whether their supply chain involves entities newly sanctioned or newly delisted.
Defence and dual-use exports: With US-UK defence cooperation in the spotlight, British businesses in aerospace, technology, and advanced manufacturing must verify that their export licences remain current and valid under evolving US-UK-Israel arrangements.
The UK legal framework: what British businesses must know
UK businesses operating internationally are subject to a complex web of sanctions regimes that can shift rapidly with geopolitical changes. The key frameworks are:
UK OFSI (Office of Financial Sanctions Implementation): Administers UK autonomous sanctions. Businesses must screen counterparties against the UK Consolidated Sanctions List. Crucially, the UK list does not automatically mirror US OFAC designations post-Brexit — you must check both independently.
Export Control Order 2008 (as amended): Governs which goods and technologies require export licences. Items on the Military List or Dual-Use List require approval before export to certain jurisdictions — including some entities in the Middle East.
The Bribery Act 2010: UK businesses operating through local agents in the region face heightened bribery risk during periods of political instability. "Adequate procedures" must be in place.
GDPR and data sovereignty: If your Middle East operations involve personal data — client records, employee data — be aware that data transfer requirements apply to all jurisdictions, including those with evolving political relationships with the UK.
Three legal risks UK businesses often overlook
1. Secondary sanctions exposure. Even if your company has no direct US nexus, US secondary sanctions can still bite: if you do business with entities on the US SDN (Specially Designated Nationals) list, you risk being cut off from the US financial system. This is particularly relevant for companies using US dollar-denominated transactions.
2. Correspondent banking risk. UK banks frequently freeze transfers to or from regions under sanctions scrutiny — sometimes even when the specific transaction is legal. Understanding your bank's de-risking policies before initiating Middle East transactions is essential.
3. Contract force majeure clauses. Geopolitical events — including sanctions changes — may trigger force majeure provisions in existing contracts. If a supplier or client in the region can no longer fulfil obligations due to new restrictions, who bears the risk? Your contracts may need updating.
What to do now: a legal checklist for UK businesses
Whether you have direct Middle East exposure or are simply monitoring risk, these steps are worth taking now:
- Screen your counterparties: Run all current suppliers, clients, and partners based in or connected to the region against the UK Consolidated Sanctions List and US SDN list
- Review your export licences: Are current licences still adequate given policy shifts? Licence conditions can change.
- Update force majeure clauses: Ensure contracts clearly define geopolitical events as potential triggers, with clear risk allocation
- Consult your bank's compliance team: Understand current de-risking policies that could affect your transaction flows
- Document your compliance process: In the event of an OFSI investigation, a documented compliance programme is your primary defence
When to speak to a solicitor
The intersection of international sanctions law, export controls, and commercial contract risk is genuinely specialist territory. A general commercial solicitor may not have the expertise required — you need someone who understands UK and US sanctions regimes, not just one of them.
A solicitor specialising in international trade law can:
- Conduct a rapid sanctions risk assessment for your business
- Advise on licence applications or exemption requests
- Draft compliant contract clauses for Middle East-facing agreements
- Represent you in the event of an OFSI inquiry
On Expert Zoom, you can connect immediately with UK-based solicitors specialising in international trade, sanctions law, and commercial contracts — without the delay of traditional law firm intake processes.
Key takeaways
- Trump's evolving stance on Israel is generating rapid shifts in sanctions and trade policy that affect UK businesses with Middle East exposure
- UK OFSI and US OFAC sanctions lists diverge post-Brexit — businesses must check both
- Secondary sanctions, correspondent banking risk, and force majeure gaps are the most commonly overlooked legal risks
- A solicitor specialising in international trade law can audit your exposure and update your compliance framework
This article is provided for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.
