Unilever on Wednesday sold its Ben and Jerry’s ice cream business in Israel to its local licensee for an undisclosed total, aiming to smooth a possibly damaging diplomatic row over the company’s political stance. The deal comes after the U.S. ice cream brand declared last year it would quit marketing items in the Israeli-occupied Palestinian territories, saying that selling there was “inconsistent” with its values. Under the new arrangement Ben & Jerry’s ice cream will be available to all consumers in Israel and the occupied West Bank. On Wednesday, Israel’s foreign ministry called the Ben & Jerry’s deal “a huge...