Israel was urged to give sanctions "a real chance" as Iran announced it was cutting oil sales to Britain and France.

Foreign Secretary William Hague called on Israel to look again at the approach "of very serious economic sanctions and diplomatic pressure, and the readiness to negotiate with Iran.

Israel and Britain have hailed the European Union for moving in the right direction after a new sanction on Iran was agreed.

The EU agreed on Monday morning to impose an oil embargo on Iran – one part of its wider challenge to Iran's nuclear programme.

Foreign Secretary William Hague has delivered a sharp rebuke to Israel over its decision to accelerate the construction of settlements and withhold tax revenues to the Palestinian Authority in a parliamentary statement on the Middle East.

Israel's Opposition leader has met the Foreign Secretary in London.

Tzipi Livni, in Britain for the first time since an anti-Israel group used the old universal jurisdiction legislation to apply for a war crimes arrest warrant for her, was at the Foreign and Commonwealth Office this morning for the meeting.

William Hague has warned that "time is running out" to find a solution to the conflict in the Middle East.

The Foreign Secretary, addressing the Conservative Party conference, said Britain wanted to see Jerusalem as a shared capital.

The Foreign Secretary has joined leaders of the main parties in wishing the Jewish community "in the UK and around the world" a happy new year.

Britain's Foreign Secretary has expressed his disappointment with Israel following the announcement on Tuesday that tenders would be issued for housing development in the West Bank.

William Hague said that the construction of more than 300 housing units for the areas of Beitar Ilit and Karnei Shomron would "create further obstacles on the difficult path to peace".

William Hague has called for Syrian President Bashar Assad to reform or step aside.

The Foreign Secretary said the Syrian leader was losing legitimacy.

In an address to the House of Commons, Mr Hague condemned the Syrian regime, which human rights groups blame for the deaths of 1,200 protesters since anti-government uprisings began in the country three months ago.

William Hague has expressed solidarity with Israelis and offered “deepest condolences” to the family of the British women killed in yesterday’s bomb attack in Jerusalem.

The Foreign Secretary, addressing the House of Commons, condemned the attack and drew attention to the 30 victims, eight of whom were seriously injured.

Israel’s Defence Minister Ehud Barak has met Foreign Minister William Hague in London to discuss an “urgent return to negotiations.”

Speaking after the meeting last night, Mr Hague said: “I had a constructive wide-ranging meeting with Defence Minister Barak. I underlined that the UK unreservedly condemns the murder of the family in Itamar on March 11.”

William Hague has announced that Britain is to upgrade the status of the Palestinian delegation to this country to a mission.

Speaking in advance of Palestinian President Mahmoud Abbas’ arrival in Britain today to meet the Foreign Secretary and the Prime Minister, Mr Hague said Britain would “join many other countries” in doing so.

William Hague has said that Britain wants to have a good relationship with Israel, irrespective of this country’s links with countries in the region.

The Foreign Secretary, responding to questions put to him on Twitter, said: “We want strong relations with Israel as well as with other countries in the Middle East - it is not one or the other.”

William Hague's dramatic intervention in the Middle East peace process this week can not easily be dismissed as spin or journalistic hype.

It is no accident that he spoke so candidly to The Times during his mission to five countries affected by the "New Arab Revolt", nor that he used such strong language.

His determination to talk tough to Israel and the Obama administration about the urgency of restarting the peace process in the light of events in Egypt marks a significant development.