With tensions in the Middle East ramping up following Israel's deadly attack on a Turkish flotilla last month, Palestinians in the West Bank have launched what they describe as a non-violent mobilization against Israel.

Just over a month ago, Palestinian lawmakers made it illegal for businesses in the West Bank to sell products which originate on Jewish settlements. Palestinians say that such settlements are illegal and have encroached on their territory.

West Bank businessman Nader Muslah says he eliminated settler products from his shop a decade ago. He adds that making a statement against the settlements should be of the utmost importance for residents in the West Bank.

More importantly, he told CTV's Joanne Clancy that being self-sufficient will help Palestinians create their own state in the coming years.

"One step at a time. We should get to our goal, hopefully, to have a state, and have peace living with our kids … that is one of the best solutions, I think."

Israel, meanwhile, says the boycott is only heightening already frayed tensions in the region. Recently, the Israeli government proposed a bill that could financially punish anyone who incites such boycotts against the state.

Indeed, Israel is concerned that such boycotts cause the state real economic harm. And for good reason: since the boycott began, 17 Israeli settlement business operations have shut down.

While the boycott law is designed to spur Palestinian patriotism, buying settler-made products can lead to fines of about $15,000 or a five-year prison term in the West Bank.

Israeli commercial mushroom-grower Mira Wiegensburg said that the fines are likely the main reason why the boycott appears to be taking hold.

Wiegensburg, whose mushrooms are on the banned list, said the boycott simply exacerbates relations, and isn't good for either side. Wiegensburg added that creating economic partnerships is the best way to ensure peace in the region.

Despite the fines, in Palestinian towns like Ramallah, it appears that people are behind the boycott.

"It's a win-win for Palestinians, politically speaking it's very much correct," said Palestinian Authority spokesman Ghassan Khatib.

"It also fits with our process of trying to resist the expansion of settlements in a peaceful and legal way."

With a report from CTV's Joanne Clancy