Israel-Hamas war: Sadiq Khan among senior Labour figures breaking ranks with Starmer to back full ceasefire in Gaza
Sir Keir Starmer is under growing pressure to call for a ceasefire in Gaza after a string of senior Labour figures broke ranks to challenge his stance.
London mayor Sadiq Khan, Scottish Labour leader Anas Sarwar and Greater Manchester mayor Andy Burnham are among those who want the Labour leadership to strengthen its position and back a full cessation of violence between Israel and Hamas.
Sir Keir is united with Rishi Sunak, the US, and most recently the EU in pushing for “humanitarian pauses” in the fighting, while supporting Israel’s right to defend itself against the militants who launched a wave of bloodshed in the country earlier this month, killing more than 1,400 people, according to authorities.
Politics Live: Pressure mounts on Keir Starmer as trio of top Labour figures call for Gaza ceasefire
But the Labour leader has angered MPs for not going further, with dozens urging him to back a ceasefire to prevent the conflict from escalating.
On Friday Mr Khan, who became the first-ever Muslim mayor of London in 2016, said: “I join the international community in calling for a ceasefire. It would stop the killing and would allow vital aid supplies to reach those who need it in Gaza.
“It would also allow the international community more time to prevent a protracted conflict in the region and further devastating loss of life.”
Mr Khan said Israel did have the right to defend itself, but warned the “terrible situation in Gaza now looks set to deteriorate even further”.
“A widespread military escalation will only deepen the humanitarian disaster. It will increase human suffering on all sides. No nation, including Israel, has the right to break international law.”
Scottish Labour leader Mr Sarwar, who in 2021 became the UK’s first Muslim to lead a political party, made the same demand with his own video just a few hours later.
He said there must be an “immediate cessation of violence, with an end of rocket fire into and out of Gaza”, so that aid can be delivered and hostages released.
“Let me be clear, that means a ceasefire right now,” he said.
Shortly afterwards Mr Burnham, deputy mayor Kate Green and the 10 leaders of Greater Manchester released a joint statement also calling for a ceasefire “amid the humanitarian disaster unfolding in Gaza”.
The group said they “condemn unreservedly” the Hamas attacks on 7 October and that Israel “has the right to take targeted action within international law to defend itself”.
But they added: “We also have profound concerns about the loss of thousands of innocent lives in Gaza, the displacement of many more and widespread suffering through the ongoing blockade of essential goods and services.
“It is vital that urgent support and humanitarian aid is allowed into the area.”
Shadow environment secretary Steve Reed had earlier said he “empathises” with MPs angry about the party leadership’s stance on the crisis in Gaza, but stood by the position taken by Sir Keir.
The shadow frontbench member told Sky News that if the attack Israel suffered had happened in the UK: “Our state would have sought to defend ourselves to protect our citizens by dismantling the capability of a terrorist organisation that carried it out. That applies to Israel too, they have the right under international law to do that.”
Party sources also made clear Sir Keir was not about to strengthen his position.
Tensions have been growing not only over his resistance in calling for a ceasefire, but also over his previous remarks in which he appeared to suggest Israel had the right to cut off power and water in Gaza.
The comments, which he has since rowed back from, prompted resignations among Labour councillors and angered the party’s MPs, even those on the frontbenches as shadow ministers.
Sir Keir has been holding meetings within his party to soothe some of the anger, including in talks with Muslim Labour MPs in parliament on Wednesday. They urged him during the “firm” exchange to back a ceasefire, believing the British public support the move as well.
How long can Starmer’s position hold?
“Let me be clear: that means a ceasefire right now.”
Anas Sarwar is determined to offer no room for equivocation or confusion on his position on the question which has cut a bitter rift through the Labour party this week.
The Scottish Labour leader has chosen the words of his social media video carefully – insisting that while “throughout this conflict I have utterly condemned the actions of Hamas” there is “no justification for the collective punishment of the people of Gaza”.
He goes on to argue that withholding essential supplies to Palestinian civilians is a “breach” of international law and that a ceasefire is the only way to ensure humanitarian aid gets through.
His intervention follows a widespread mutiny from Labour councillors and growing discontent on the parliamentary benches on the issue – sparked originally by anger in response to Sir Keir Starmer’s interview with LBC in which he suggested Israel “does have that right” to cut off power and water from Gaza as part of its action to defend itself within the context of international law.
The party leadership has been fighting a rear-guard action to backtrack on the interview ever since, arguing Sir Keir has been misinterpreted and was inadvertently responding to a different question.
But the row is a symptom of a wider feeling of frustration that the party’s position on the conflict is out of step with the position of much of its membership in not doing enough to stand up for the rights of the people of Gaza – an anger which only grows as the casualties mount and the humanitarian situation becomes ever more desperate.
Anas Sarwar’s announcement comes just hours after a similar call from London’s mayor Sadiq Khan, who argues the situation in Gaza is deteriorating, military action appears imminent – and therefore the time to make the case for a ceasefire is now.
This afternoon Andy Burnham, the mayor of Greater Manchester, added his weight to the campaign too. Burnham’s never been afraid to speak his mind or diverge from the leader’s position, but he’s a powerful voice in the party.
Likewise Mr Khan is no stranger to taking an independent stance – as seen during this summer’s row over Ulez expansion – but Sarwar’s intervention is perhaps more striking.
He’s something of a rising star in the party thanks to Labour’s growing popularity in the Scottish polls, crowned by their stonking win over the SNP in the Rutherglen and Hamilton West by-election.
The road to a majority Labour victory at the next general election has to run through Scotland; and while the recent collapse in SNP support is largely due to their own internal issues, Sarwar has successfully capitalised on that. His influence has grown as a result.
The SNP have been calling for a ceasefire for some time now – Humza Yousaf’s wife’s family of course among those trapped in Gaza.
Now Sarwar’s position is more closely aligned with that of the SNP than his own party leadership, which mirrors the government’s in calling for ‘humanitarian pauses’ to let aid in and civilians and hostages out without negating Israel’s right to take military action against Hamas.
For two of Labour’s most prominent Muslim voices to step beyond the party line in calling for a ceasefire piles the pressure on to Sir Keir Starmer.
The Labour leader has spent years stamping out antisemitism in the party and so far has been resolutely determined not to suggest any lessening in his unequivocal support for Israel as it responds to the atrocities perpetrated by Hamas.
But as the carnage in Gaza grows worse by the hour – how long can his position hold?
Ministers also resist ceasefire pressure
Government ministers are also resisting pressure to back calls for a ceasefire.
On Friday, dozens of children laid teddy bears outside the gates of the Foreign Office to put pressure on Downing Street to withdraw military support for Israel.
The demonstration was organised by a group of parents who said they felt compelled to act as they watched the scenes of destruction in the bombarded 25-mile territory. The Palestinian death toll in Israeli retaliatory strikes in Gaza has passed 7,000, according to the health ministry.
However, Education Secretary Gillian Keegan said on Friday morning that Downing Street did not want to “cross that line of telling Israel it has anything but the right to defend itself”.
“Hamas have created this situation and Hamas are now embedding themselves in the Palestinian population,” she told ITV’s Good Morning Britain.
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Minister: Need ‘longer pauses’ for Gaza aid
Read More:
Wes Streeting: People ‘upset and hurt’ by Labour’s initial reaction to war
Border Force teams set up in Egypt to help citizens – if they can get out
Parents and children lay out cuddly toys across the entrance to the Foreign Office in London
Instead of a ceasefire, government ministers are calling for a break in the fighting – dubbing this a “humanitarian pause”- in order to get aid into Gaza and allow British citizens to escape.
Around 200 British nationals are thought to be trapped in the territory.
UK Border Force teams are set up in Egypt to help if the Rafah border crossing is opened up for people to leave.
The crossing into northeast Egypt is currently closed apart from for aid deliveries – with Cairo reportedly blaming Israeli bombings around the area for it not being open for foreign nationals to pass through.
The US Treasury Department sanctioned eight cryptocurrency wallet addresses linked to Russian crypto exchange Garantex and the Houthis.
The United States Office of Foreign Assets Control (OFAC) sanctioned eight crypto addresses that data from blockchain forensic firms Chainalysis and TRM Labs had linked to the organizations. Two are deposit addresses at major crypto platforms, while the other six are privately controlled.
Visualization of transaction flow related to OFAC sanctions. Source: Chainalysis
The addresses in question reportedly moved nearly $1 billion worth of funds linked to sanctioned entities. Most of the transactions funded Houthi operations in Yemen and the Red Sea region.
Slava Demchuk, a crypto-focused money laundering specialist and United Nations Office on Drugs and Crime consultant told Cointelegraph that “the inclusion of Houthi-linked wallets reflects a broader recognition of crypto’s role in geopolitical conflicts and terrorism financing.” He added:
“The implications are far-reaching — compliance frameworks must adapt swiftly, attribution efforts will intensify, and decentralized platforms may face increased scrutiny.“
Demchuk highlighted that the situation reshapes the regulatory landscape. According to him, crypto “is now firmly within the scope of international security.
Who are the Houthis?
The Houthis, also known as Ansar Allah, are a Yemeni political and armed movement that emerged from the Zaidi Shia community. Originating as a revivalist and reformist group, they later became a major force in Yemen’s ongoing conflict.
Related: US DOJ says it seized Hamas crypto meant to finance terrorism
In recent years, the Houthis have engaged in attacks against both military and civilian vessels in the Red Sea with missiles and drones. In January, US President Donald Trump designated the group as a foreign terrorist organization.
The announcement noted that “the Houthis’ activities threaten the security of American civilians and personnel in the Middle East, the safety of our closest regional partners, and the stability of global maritime trade.” The group was recently struck by a US bombing campaign.
Related: Binance claims’ no special relationship’ with Hamas, argues to dismiss lawsuit
Garantex: Russia’s crypto laundromat
Garantex is a Russian crypto exchange that was sanctioned and shut down in early March after purportedly helping money-laundering efforts. At the time, Tether — the leading stablecoin operator and issuer of USDt — froze $27 million in USDt on the platform, forcing it to halt operations.
The platform has reportedly shifted millions of dollars as it sought to reboot under its new brand, “Grinex.”
In mid-March, officials with India’s Central Bureau of Investigation announced the arrest of Lithuanian national Aleksej Bešciokov, who was alleged to have operated the cryptocurrency exchange Garantex.
The arrest of the alleged Garantex founder was based on US charges of conspiracy to commit money laundering, conspiracy to operate an unlicensed money-transmitting business and conspiracy to violate the International Emergency Economic Powers Act.
Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Lawmakers in the US states of Minnesota and Alabama filed companion bills to identical existing bills that if passed into law, would allow each state to buy Bitcoin.
The Minnesota Bitcoin Act, or HF 2946, was introduced to the state’s House by Republican Representative Bernie Perryman on April 1, following an identical bill introduced on March 17 by GOP state Senator Jeremy Miller.
Meanwhile, on the same day in Alabama, Republican state Senator Will Barfoot introduced Senate Bill 283, while a bi-partisan group of representatives led by Republican Mike Shaw filed the identical House Bill 482, which allows for the state to invest in crypto, but essentially limits it to Bitcoin (BTC).
Twin Alabama bills don’t explicitly name Bitcoin
Minnesota’s Bitcoin Act would allow the state’s investment board to invest state assets in Bitcoin and other cryptocurrencies and permit state employees to add crypto to retirement accounts.
It would also exempt crypto gains from state income taxes and give residents the option to pay state taxes and fees with Bitcoin.
Source: Bitcoin Laws
The twin Alabama bills don’t explicitly identify Bitcoin, but would limit the state’s crypto investment into assets that have a minimum market value of $750 billion, a criterion that only Bitcoin currently meets.
26 Bitcoin reserve bills now introduced in the US
Introducing identical bills is not uncommon in the US and is typically done to speed up the bicameral legislative process so laws can pass more quickly.
Bills to create a Bitcoin reserve have been introduced in 26 US states, with Arizona currently the closest to passing a law to make one, according to data from the bill tracking website Bitcoin Laws.
Arizona currently leads in the US state Bitcoin reserve race. Source: Bitcoin Laws
Pennsylvania was one of the first US states to introduce a Bitcoin reserve bill, in November 2024. However, the initiative was reportedly eventually rejected, with similar bills also killed in Montana, North Dakota, South Dakota and Wyoming.
Related: North Carolina bills would add crypto to state’s retirement system
Montana, North Dakota, Pennsylvania, South Dakota and Wyoming are the five states thathave rejected Bitcoin reserve initiatives. Source: Bitcoin Laws
According to a March 3 report by Barron’s, “red states” like Montana have faced setbacks to the Bitcoin reserve initiatives amid political confrontations between the Democratic Party and the Republican Party.
Additional reporting by Helen Partz.
Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Update (April 3, 5:43 am UTC): This article has been updated to add information on the STABLE Act and GENIUS Act.
The US House Financial Services Committee has passed a Republican-backed stablecoin framework bill, which will now head to the House floor for a full vote.
The Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy, or STABLE Act, with a 32-17 vote on April 2, with six Democrats voting in favor.
The bill was introduced on Feb. 6 by committee Chair French Hill and the chair of its Digital Assets Subcommittee, Bryan Steil — reportedly drafted with the help of the world’s largest stablecoin issue, Tether.
Source: Financial Services GOP
The bill would provide rules around payment stablecoins, a crypto token tied to a currency such as the US dollar, and aims to ensure issuers give information about their business and how they back their tokens.
During an earlier markup session, the committee’s leading Democrat, Maxine Waters, who later voted against the bill, criticized her Republican peers for “setting an unacceptable and dangerous precedent” with the STABLE Act.
She said President Donald Trump could use the bill to allow his family’s stablecoin to be used in government payments, and argued the bill validates Trump “and his insiders’ efforts to write rules of the road that will enrich themselves at the expense of everyone else.”
In late March, the Trump family’s World Liberty Financial crypto venture launched a stablecoin, World Liberty Financial USD (USD1). Meanwhile, the US Housing Department, which oversees social housing, was reportedly looking to experiment with using stablecoins for some of its functions.
Stablecoin GENIUS Act also weaves through Congress
Other stablecoin-related bills are also working their way through Congress, including the Republican-led Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, which lays out oversight and reserve rules for issuers.
Related: Crypto has a regulatory capture problem in Washington — or does it?
The US Senate Banking Committee voted through the GENIUS Act in an 18-6 vote on March 13, after Senator Bill Hagerty, one of the bill’s co-sponsors, updated it following consultation with the Committee’s Democrats.
Before the vote, Democratic Senator Kirsten Gillibrand said the updated GENIUS Act made “significant improvements to a number of important provisions” in areas such as consumer protections and authorized stablecoin issuers.
Both the STABLE Act and GENIUS Act will now wait until debate time on the floor of the House and Senate, respectively, before they head for a floor vote.
Crypto journalist Eleanor Terrett reported on X that two unnamed crypto lobbyists said there is likely to be “a coordinated push behind the scenes over the next few weeks to get the two bills to mirror each other, as there are still some differences between them.”
Doing so would “avoid having to set up a so-called conference committee which is formed so members from both chambers can negotiate to create a final version of the bill everyone agrees on,” she added.
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