EU foreign ministers are gathering in Brussels on Monday to debate whether to impose trade restrictions on goods produced in Israeli settlements in the occupied West Bank. The meeting is exploratory, not a vote. But with roughly 20 member states pushing for action, the conversation has moved well past the hypothetical stage.

The European Commission has prepared a confidential options paper laying out three paths forward: an import licensing system, elevated tariffs designed to make settlement goods less competitive, or a full or partial import ban. None of those outcomes are expected Monday. The point is to take the temperature of the room.

What’s actually on the table

The trade itself is not enormous. EU imports…