There is something almost admirable about the efficiency with which Andy Burnham and Ed Miliband have converted a modest trade restriction into a diplomatic crisis with Israel. But then again, Labour has a peculiar knack for turning domestic token gestures into major foreign-policy blunders.

On Tuesday, Britain announced a ban on imports from Israeli settlements in the West Bank and restrictions on British businesses dealing with them. Then, Ed Miliband went considerably further. The Foreign Secretary accused “extremist settlers” of “ethnic cleansing,” charged Benjamin Netanyahu’s government with enabling it, and adopted the position that Israel’s continuing occupation of the Palestinian territories is unlawful. The commercial significance of the measures is small. Their political significance is anything but.

Israel responded accordingly. Foreign Minister Gideon Sa’ar announced the closure of the British consulate in East Jerusalem. Britain is to be removed from the American-led Gaza coordination mechanism. Its role in training Palestinian Authority security forces will end. Twelve British political figures are to be denied entry. A sanctions package designed principally to make a political statement has therefore achieved the remarkable feat of reducing Britain’s ability to influence Israelis and Palestinians alike. This is what happens when foreign policy becomes an extension of Labour Party electoral management.

The origins of the policy lie much closer to Manchester and Westminster than to Jerusalem. Burnham advertised the change before entering Downing Street. In July, he apologised for Labour’s previous position on Gaza, saying that the party “didn’t get it right,” and promised greater pressure on Israel. Contemporary reporting understood the........

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