US President Joe Biden and Jordan's King Abdullah spoke about the importance of a two-state resolution to the conflict when they met at the White House earlier this week.
The sanctions were considered amid exacerbated tensions between the US and Israel due to Washington's insistence that Israel refrain from carrying out a full-fledged invasion of Rafah.
The UK Foreign Secretary's office says these four Israelis threatened human rights in the West Bank.
The US sanctions against four Israeli West Bank settlers are especially far reaching and are typically reserved for terrorists.
Drawing equivalency between Settlers and Hamas will only embolden Palestinian terrorists to continue their campaign to eliminate Israel
According to the State Department, Levi led a group of settlers who created an atmosphere of fear in the West Bank.
Canadian Prime Minister Justin Trudeau on Friday said he was considering imposing sanctions on "extremist" settlers in the West Bank.
"There is no justification for extremist violence against civilians, whatever their national origin, ethnicity, or religion."
The alleged assassination plan fit into a pattern of behavior in which the Islamic Republic uses organized crime to kill or kindap dissidents abroad, the US Treasury Dept said.
On Monday, US and British forces carried out a new round of strikes in Yemen, targeting a Houthi underground storage site as well as missile and surveillance capabilities used by the terrorist group.