UK, Australia and Canada Announce ‘Fund for Peace’ for Israelis and Palestinians

Darwin, 12 June : The United Kingdom, Australia, and Canada on Thursday announced an “International Fund for Peace” for Israelis and Palestinians, aimed at supporting peacebuilding efforts “to help create the conditions necessary for a lasting peace.”

Over the next three years, each of the three countries will contribute £1 million (US$1.3 million), with the hope that other nations will also make contributions. According to a joint statement by UK Foreign Secretary Yvette Cooper and her Australian and Canadian counterparts, Penny Wong and Anita Anand, Israeli and Palestinian civil society organizations will be eligible to apply for grants from the fund.

The fund will invest in initiatives that “advance a two-state solution, help reduce divisions, strengthen civil society, and lay the foundations for peace by supporting dialogue and cooperation both within and between Israeli and Palestinian communities.”

This initiative comes at a time when hopes for Israeli-Palestinian peace are widely seen as diminished following the Hamas-led attack on Israel on October 7, 2023, the subsequent war in Gaza, and the increase in settler violence in the West Bank.

The foreign ministers stated: “We are taking this step at a moment of profound crisis in Israel and the Palestinian territories. Over the past three years, civilians have endured devastating and inhumane consequences, while mistrust and division between communities have deepened. At the same time, civil society has faced growing restrictions and unprecedented pressure.”

They said the fund would also help marginalize Hamas and other extremist groups operating in Gaza.

The ministers reaffirmed their countries’ commitment to “a just and lasting resolution of the Israeli-Palestinian conflict,” based on a negotiated two-state solution in which both Israelis and Palestinians can live in peace, security, and dignity.

The Israeli government opposes the establishment of a Palestinian state, and public support for a two-state solution has declined significantly compared to previous years.

The announcement came as Cooper hosted Wong and Anand for discussions on the situation in the Middle East and other international issues.

In a separate statement from the UK Foreign Office, Cooper said: “Too often, peace in the Middle East is viewed solely as a matter of international diplomacy. When generations of Israelis and Palestinians have grown up in cycles of conflict and violence, we must also support local organizations that are working to build dialogue, peace, and trust between communities.”

The UK statement specifically noted that the three countries “reaffirmed their commitment, as part of the 20-point Gaza Peace Plan, to disarm, dismantle, and remove Hamas from power so that it can play no role in the future governance of Palestine and pose no future threat to Israel’s security.”

It also stated that the three ministers discussed “the rise in antisemitic hatred and violence worldwide” and reaffirmed their commitment to protecting “the freedom and security of Jewish communities that have been targeted by horrific attacks in the United Kingdom, Australia, and Canada over the past year.”

Antisemitism has increased in all three countries in recent years, and in Australia, gunmen killed 15 people in a terrorist attack during a Hanukkah event at Bondi Beach in December.

The Gaza war was suspended in October 2025 through a U.S.-mediated 20-point ceasefire plan. However, sporadic clashes continue as Gaza remains divided between Israeli-controlled and Hamas-controlled areas. Hamas has so far rejected proposals to disarm.