Conflict in the Middle East

Baroness Morris of Bolton Excerpts

Monday 16th June 2025 Lords Chamber

[Lord Collins of Highbury (Lab)]

I am going to be absolutely focused on one thing, which is what this crisis now faces: the potential of Iran obtaining nuclear weapons. It is the real threat in this situation. It is presenting the real danger, which is what our focus will be on.

[Baroness Morris of Bolton (Con)]

My Lords, I welcome the Statement and the sensitive way in which the Minister has answered questions at a very difficult time. Last week in the other place, the Minister for the Middle East, Hamish Falconer, said right at the beginning of his Statement:

“The two-state solution is in peril”.—[Official Report, Commons, 10/6/25; col. 913.]


If there is to be any hope of a two-state solution being delivered, there must be a functioning Palestinian banking and finance sector, but it is currently on its knees due to the actions of the Israeli Government, including withholding Palestinians’ own money and with Minister Smotrich threatening total collapse. I ask the Minister what we, our allies in the West and friends in the Gulf are doing to help to make sure that does not happen.

[Lord Collins of Highbury (Lab)]

That is in nobody’s interests, and so far the action that is supposedly threatened has not been taken. To do so would ensure the complete collapse of the financial situation in the Occupied Territories. I agree with the noble Baroness that it would be a catastrophe if that action was taken, and we are doing what we can to influence the situation. It would be an incredibly retrograde step, and would deeply impact the ability of Palestinians to carry out what possible normal livelihood they have at the moment; it would be a disaster.