Belgium Bans Israeli Settlement Imports as Oil Surges Past $90

Belgium has become the fourth EU member state to ban imports of products originating from Israeli settlements in occupied Palestinian territories, adopting the measure in its final cabinet meeting before the summer break. The decision comes as Europe confronts a converging energy crisis, with crude oil prices surging above $90 per barrel for the first time since June and analysts warning that diesel inventories could fall to their lowest level in over a decade.

Belgium Joins Growing List of EU Nations Targeting Settlement Goods

The Belgian federal government, led by Prime Minister Bart De Wever, approved the ban on the night of July 17-18, prohibiting direct imports of agricultural products such as olive oil, fruits, and vegetables from Israeli settlements in the West Bank, East Jerusalem, and the Golan Heights. According to RTBF, the economic impact is expected to be limited — over the first five months of 2025, officially labeled settlement goods imported directly through Belgian ports amounted to approximately €600,000.

Belgian Foreign Minister Maxime Prévot defended the decision, stating: “The attitude of the Israeli government has for a long time already exceeded the stage of legitimate defense following the attacks of October 7, 2023. There is a massive deprivation of rights, serious violations of international and humanitarian law. And so we wanted to give a very clear signal.”

Belgium joins Ireland, Spain, and the Netherlands in adopting national bans, with Slovenia having taken a similar approach before shifting its policy after a change in government. The moves come as EU foreign ministers remain deadlocked over a bloc-wide approach, despite the European Commission circulating a paper outlining three options: an import ban, a licensing scheme, or high tariffs on settlement goods.

A 2026 investigation by the Global Echo Litigation Center examined more than 30,000 export documents and found that roughly 19.2% of Israeli agricultural shipments to the EU originate from settlements, with exporters routinely obscuring the true origin of produce.

Nathalie Janne, advocacy officer at Amnesty International Belgium, noted a significant limitation: “There is no ban on commercialization of products, which allows products that are not imported directly through Belgian ports and airports to enter via another member state that does not prohibit these products.”

Europe Faces Critical Diesel Shortage

As Belgium made its symbolic trade move, a far more pressing economic crisis was unfolding across the continent. Morgan Stanley analysts warned over the weekend of July 18-19 that European diesel inventories are on track to fall to their lowest level since 2015 by year-end. As HLN reported, the bank’s analysts described the situation as “truly precarious.”

Diesel prices in Belgium have reached €2.145 per liter, the highest since May 21, 2026, reversing the historical trend where diesel was cheaper than petrol. The squeeze stems from multiple converging factors: the escalation of the US-Iran conflict disrupting shipping through the Strait of Hormuz, lower crude oil processing in China, Ukrainian attacks on Russian refineries, a Russian export ban on diesel, and reduced refinery output in Europe.

Oil Prices Surge Above $90 Amid Renewed US-Iran Hostilities

Brent crude oil rose above $90 per barrel on July 20, marking a gain of approximately 2.72%, according to VRT NWS. The surge follows the rapid deterioration of the ceasefire agreement reached in mid-June between the US and Iran. US President Donald Trump declared the ceasefire “definitively over” during the NATO summit in Ankara, and traders now fear prolonged disruption to shipping through the Strait of Hormuz, a critical chokepoint through which a significant portion of global oil and LNG passes.

European gas prices have also risen sharply, with TTF gas surging above €51 per megawatt-hour after an LNG tanker was hit by a projectile in the Strait of Hormuz. During the peak of the Iran conflict in late April, Brent reached approximately $126 per barrel.

EU Bans Destruction of Unsold Textiles

Amid these geopolitical and energy crises, the EU also marked a significant environmental milestone on July 19. Large textile companies with revenue exceeding €50 million are now banned from destroying unsold clothing, shoes, and accessories, as RTBF reported. Medium-sized enterprises must comply by July 2030.

Each year in Europe, 600,000 tonnes of new textiles are destroyed — unsold stock, customer returns, and inventory eliminated for commercial or logistical reasons — generating approximately 5.6 million tonnes of CO2 emissions annually, roughly equivalent to Sweden’s total net emissions in 2021.

Nathalie De Greve, sustainability director at Comeos, explained: “This is intended to make our companies think about the quantities of products they put on the market. They must try to better align supply and demand to avoid unsold stock.”

Starting in 2028, extended producer responsibility rules will require companies to financially support the collection, treatment, and recycling of unsold products. However, Belgian retailers face competition from Chinese platforms like Temu and Shein, which may not comply with EU standards — a concern Comeos is actively raising.

What to Watch For

The convergence of these developments paints a picture of a Europe navigating multiple simultaneous challenges. Belgium’s ban on settlement imports adds pressure on the EU to adopt a bloc-wide approach, though deep divisions among member states remain. The energy crisis shows no signs of abating, with diesel shortages, surging oil prices, and renewed US-Iran hostilities creating a volatile outlook for consumers and businesses alike. Meanwhile, the textile ban signals a broader regulatory shift toward circular economy principles that will reshape European retail in the years ahead.

Key questions remain: Will other EU countries follow Belgium’s lead on settlement imports? How long will the US-Iran conflict continue to disrupt global energy markets? And can European governments implement effective relief measures for households and businesses bearing the brunt of rising energy costs?