The US government is preparing to require goods produced in Jewish settlements in the West Bank to be clearly labelled as coming from there, American officials have said.

The timing of the move is yet to be decided, the FT reported.

The move, which would reverse a policy introduced by the Trump administration in 2020 that required goods produced in the West Bank to be labelled as ‘Made in Israel’, comes amid US frustration with Israel over the war in Gaza.

US President Joe Biden held a tense conversation with Israeli PM Prime Minister Benjamin Netanyahu on Thursday following the strike on the World Central Kitchen convoy which left seven aid workers dead.

Following the conversation, Israel’s security cabinet took steps to improve the humanitarian situation in Gaza, the Prime Minister’s Office announced early Friday.

The Biden administration was close to announcing the move on settlement goods last month, after Israel’s far-right finance minister Bezalel Smotrich announced a major West Bank land seizure.

The announcement came during a visit to Israel by US secretary of state Antony Blinken, angering the administration.

Two days later the US abstained from a ceasefire resolution at the UN, allowing it to pass.