UK, Australia and Canada Launch £3 Million Mideast Peace Fund

The United Kingdom, Australia and Canada have launched a joint £3 million ($4.02 million) peace fund to support grassroots efforts backing a two-state solution to the Israeli-Palestinian conflict, the UK foreign ministry said Thursday. Each country is contributing £1 million ($1.34 million) to the initiative.

The fund will support new and existing projects that build dialogue and trust, with a focus on youth groups, civil society organisations and women’s groups, officials said. The programme is intended to bolster long-term peacebuilding and address what the foreign ministry described as underlying drivers of the conflict.

The announcement comes as the three countries step up coordinated diplomatic and financial measures tied to violence in the occupied West Bank. Officials said the fund is meant to complement humanitarian support for Palestinians and efforts to curb violent Israeli settlers.

The initiative was unveiled ahead of a meeting in Britain between UK Foreign Secretary Yvette Cooper and her Australian and Canadian counterparts, Penny Wong and Anita Anand. Officials said the fund is designed to scale up once operational and attract additional donors.

Link to recent sanctions over West Bank violence

Earlier this week, the three countries, alongside France, New Zealand and Norway, announced coordinated sanctions targeting networks they said were financing and executing Israeli settler violence against Palestinians in the West Bank. The fund is being presented as a longer-term complement to those measures.

Cooper said in a statement that a negotiated two-state solution remains the only viable route to a just and lasting peace, with security and dignity for Israelis and Palestinians. She said the new fund is aimed at supporting progress toward that goal from within communities on the ground.

What the fund will back and what comes next

Officials said the programme will prioritise grassroots organisations that work across communities and build practical cooperation. The foreign ministry said it expects the initiative to expand over time as it brings in additional partners and financing.

The countries said they view a negotiated two-state settlement as central to long-term stability in the region, and indicated further engagement will depend on how quickly projects can be launched and additional donors secured.