LONDON/GAZA/JERUSALEM — The British government on Monday warned individuals and companies considering bids for construction projects in Israel's controversial E1 settlement project in the occupied West Bank that they could face sanctions and legal and reputational consequences.

"The decision by the Israeli Government to open tenders for settlements in E1 is a direct threat to the prospect of a two-state solution and has been widely condemned by the international community. Today is the deadline for bids for the E1 settlement tender," British Foreign Secretary Ed Miliband said in a statement.

He warned that Britian had created new powers allowing to sanction individuals and companies involved in the construction of illegal settlements such as E1.

"We urge businesses and individuals not to proceed with bids for E1 construction tenders. They should be aware of legal and reputational consequences, including the risk of involving themselves in serious breaches of international law," said the foreign secretary.

"This UK Government will not accept the continued displacement of Palestinians and the unlawful occupation that persists," he added.

ALSO READ: Netanyahu vows 'no Palestinian state' as he signs E1 settlement plan

Israel advanced the E1 settlement project in the West Bank in August by issuing a tender for 1,234 housing units. Published online by Israel's Ministry of Construction and Housing, the tender covers part of a broader plan to build 3,401 housing units in the E1 area, located east of Jerusalem.

In September, 12 countries, including Canada, Denmark, Finland and France, announced that they would tighten restrictions on trade with Israeli settlements in the occupied West Bank.

The 12 foreign ministers said in a statement that the E1 decision was among the developments undermining prospects for a Palestinian state and called on the Israeli government to immediately halt settlement expansion and ensure accountability for settler violence. 

Sources: 3 Palestinians killed in Gaza

Three Palestinians, including two children, were killed by Israeli fire in the Gaza Strip on Monday, according to Palestinian medical and local sources.

A local source told Xinhua that an Israeli drone fired a missile at a gathering of Palestinians in the Qizan Rashwan area south of Khan Younis. Nasser Medical Complex in the city said the strike killed two children and wounded several others.

Earlier on Monday, a Palestinian was killed in an Israeli airstrike targeting a tent sheltering displaced people near Al-Israa Mosque in the Sheikh Radwan neighborhood northwest of Gaza City, according to medical sources.

The Israeli military has not commented on the strikes.

Meanwhile, the Gaza health authorities said in a press statement that hospitals in the coastal enclave received five bodies and 22 wounded people over the past 24 hours. The death toll since a ceasefire took effect in October 2025 has risen to 1,522, with 5,421 others wounded, according to the authorities.

In a separate press statement issued on Monday, the Israeli military said it had killed a cell commander and two members of Hamas' armed wing. The three had recently been involved in planning "terrorist" attacks against Israeli forces and rebuilding Hamas' military capabilities, the statement said.

The Israeli military said it killed a cell commander and two other Palestinian militants of Hamas in airstrikes in the Gaza Strip over the weekend.

One strike in the Tuffah quarter of Gaza City killed Abdullah Mohammed Khamis Jaber, a member of Hamas' military wing, who assisted in the group's weapons production, it said in a statement.

In a separate strike in Tuffah, Majed Ahmed Mustafa Sabbagh was killed, identified as a cell commander in Hamas' military wing.

READ MORE: Netanyahu says Israeli troops will remain in Gaza

A member of the engineering battalion of Hamas' military wing was killed in the Jabalia area, identified as Amer Bashir Mohammed Khourani.

The Israeli military claimed that the three men recently advanced attacks against Israeli soldiers and worked to restore Hamas' military capabilities.

It added that steps were taken to reduce civilian casualties ahead of the strikes, including using precision munitions and aerial surveillance.