NZ sanctions Israeli ministers ahead of UN peace talks, drawing US rebuke

The New Zealand Government has imposed targeted sanctions on two Israeli cabinet ministers, sparking a diplomatic clash with the United States just days ahead of a major United Nations conference aimed at reviving peace efforts between Israel and the Palestinians.

Foreign Minister Winston Peters announced that Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben-Gvir are now subject to travel bans and asset freezes under New Zealand’s autonomous sanctions regime. The move mirrors similar actions taken by the United Kingdom, Canada, Australia, and Norway.

“Smotrich and Ben-Gvir have severely and deliberately undermined prospects for peace and security while inciting violence and forced displacement,” Peters said. “This measure is not directed at Israel or the Israeli people. Nor is it designed to sanction the wider Israeli government.”

The decision was presented as part of New Zealand’s values-based foreign policy, with Peters reaffirming that incitement and inflammatory rhetoric must carry consequences.

However, that rationale has been criticised as glaring in its inconsistency, particularly in light of New Zealand’s inaction toward incendiary and genocidal rhetoric from Hamas and the Palestinian Authority. Despite repeated incitement, including calls for violence against Jews and the glorification of terrorism in PA schools, media, and official speeches, Wellington has never sanctioned Palestinian leaders, nor condemned such rhetoric with the same moral clarity.

Critics argue this reveals a double standard in New Zealand’s approach to the conflict — where Israeli figures are penalised for controversial remarks, yet Palestinian incitement, often directly linked to acts of terror, is largely ignored.

Dr David Cumin of the Israel Institute of NZ said “it’s not just that our government doesn’t sanction incitement against Jews or Israelis, they send our taxes to fund schools that glorify the murder of Jews and teach opposition to a two-state solution. The virtue signaling of this latest move is only overshadowed by its gross double-standard.”

Meanwhile, the United States has strongly objected to the sanctions. Secretary of State Marco Rubio called the move “extremely unhelpful,” arguing it detracts from efforts to pressure Hamas into releasing hostages and accepting a ceasefire. “Now is not the time to isolate our democratic allies,” a State Department official added.

The sanctions come as New Zealand prepares to send officials to a UN conference in New York, co-hosted by France and Saudi Arabia, focused on reaffirming the international consensus behind a two-state solution. Over 30 countries are expected to attend, though the event has drawn criticism for excluding Israeli representation and failing to address the role of terror groups such as Hamas and Hezbollah.

Peters maintains that New Zealand’s involvement in the conference is consistent with its commitment to international diplomacy and humanitarian action. But the timing of the sanctions suggests a deliberate political signal, and some observers say it risks aligning New Zealand more closely with the UN bloc historically critical of Israel.

While the Government has reaffirmed Israel’s right to self-defence and condemned Hamas’s October 7 terror attacks, the selective enforcement of moral standards raises serious questions about the credibility and evenhandedness of New Zealand’s foreign policy.