The UK and France were among 12 countries to announce new trade sanctions on Israeli settlements in the occupied West Bank on Tuesday, amid what they called a "rapidly deteriorating" situation marked by increasing settler attacks on Palestinians.

Canada, Denmark, Finland, Iceland, Ireland, Norway, Poland, Portugal, Spain, and Sweden joined the UK and France in confirming plans to introduce restrictions on trade with settlements, according to a joint statement from the countries' foreign ministers.

"The Government of Israel’s actions in the West Bank are undermining the possibility of a two-State solution," the statement reads, adding that there have been "unprecedented levels of settler violence and settlement expansion."

"Together, we are resolute: the two-state solution must be protected, and we will take action in pursuit of a just and lasting peace," it continued.

It comes after the Israeli government last month opened up tenders for the construction of around 1,200 housing units in the West Bank, drawing widespread condemnation from the international community and human rights groups.