Israel, which is not taking part, said in written comments that the court's involvement could be harmful to achieving a negotiated settlement.
The sanctions came alongside a warning against funneling money to nonprofits that promote violence.
Last week, French authorities banned 28 Israeli settlers from entering the country, accusing them of attacking Palestinians in the occupied West Bank.
Paris has backed that initiative and diplomats have said they hoped that once its measures were in place it could speed up the European process.
Not only will it likely cause economic disruption to additional West Bank residents and organizations, but it could also pave the way for other countries to take similar measures.
After the October 7 massacre, many of those who believed that the land should be relinquished to Palestinians as part of a peace agreement changed their positions after the brutality of the massacre.
The UK Foreign Secretary's office says these four Israelis threatened human rights in the West Bank.
The settler sanctions affair is closely related to another issue – another prize for terrorism.
War cabinet Minister Benny Gantz criticized Netanyahu in an X post later on Tuesday, accusing the prime minister of "taking advantage of the incident to harm the IDF."
In the eyes of the Biden Administration, the very existence of Jewish communities beyond the Green Line "threaten the peace, security, or stability of the West Bank."
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