The governments of Australia, Canada and the United Kingdom have launched a joint £3 million ($4 million) peace fund aimed at supporting efforts towards a two-state solution to the Israeli-Palestinian conflict.

Each country will contribute £1 million ($1.34 million) to the initiative, which was announced on Thursday.

According to the UK Foreign Ministry, the fund will support new and existing grassroots projects, with a particular focus on youth groups, civil society organisations and women.

The announcement follows coordinated sanctions imposed this week by Australia, Canada and the UK, alongside France, New Zealand and Norway, against individuals and networks accused of financing and carrying out settler violence against Palestinians in the occupied West Bank.

Palestinian boy pushes another child in wheelbarrow through makeshift shelters in Nuseirat refugee camp, Gaza, 11 June 2026 (Eyad Baba/AFP)