U.S. President Donald Trump announced on January 20, 2025, that he has lifted sanctions imposed by the Biden administration on far-right Israeli settler groups linked to violence against Palestinians in the occupied West Bank. This action came through an executive order that rescinded executive order 14115, initially enacted on February 1, 2024, which had frozen U.S. assets and restricted American relations with these groups.

This decision marks a significant policy shift back to Trump’s earlier approach, where during his first term in 2019, he characterized Israeli settlements as legal, a stance that was contested by much of the international community. The lifted sanctions come at a time when the Israeli-Palestinian conflict is intensifying; since the beginning of the Gaza conflict in October 2023, there have been reports of substantial violence by settlers against Palestinians in the West Bank. This includes recent incidents where settlers attacked vehicles and property, resulting in injuries to at least 21 Palestinians.

Israeli officials have expressed support for Trump's decision, characterizing the sanction lift as a historic move that signals a restoration of friendly relations between the U.S. and Israel. Yossi Dagan, head of the Northern West Bank Settlements Council, applauded the lifting of what he termed “scandalous sanctions,” viewing it as a return to alignment with U.S. support for Israeli interests.

Conversely, Palestinian officials criticized the removal of sanctions, warning that it would empower extremist settlers, escalating tensions further. The Palestinian Ministry of Foreign Affairs called the move a "serious act of blatant foreign interference," and expressed concern over what they perceive as an endorsement of violence against Palestinians.

The situation in the West Bank remains precarious, with international observers and critics of the Trump administration's moves highlighting the ongoing challenges to achieving a viable two-state solution. Trump's recent actions may further complicate diplomatic efforts aimed at peace in a region deeply scarred by decades of conflict.