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Britain likely to expel Israeli diplomats if Jerusalem consulate closes, sources say - Finance news and analysis from Global Banking & Finance Review
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Britain likely to expel Israeli diplomats if Jerusalem consulate closes, sources say

Published by Global Banking & Finance Review

Posted on October 6, 2026

4 min read

· Last updated: October 6, 2026

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Britain Likely to Expel Israeli Diplomats if Consulate Is Closed in Jerusalem

Diplomatic Tensions Rise Over British Consulate Closure in East Jerusalem

(Corrects number of sources in paragraph 10, changing reference to 'fifth source' from 'fourth source')

By Alexander Cornwell

Background of the Dispute

TEL AVIV, Oct 6 (Reuters) - Britain is likely to expel Israeli diplomats if Israel carries out its order to shut the British consulate in East Jerusalem this week in a dispute over sanctions targeting Israeli settlements, four sources said.

Israel on September 8 ordered Britain to close the East Jerusalem consulate within 30 days and remove its diplomats from the city, after Britain said it would impose a ban on trade of goods made in Israeli settlements in the occupied West Bank.

The 30-day deadline for Britain to close the consulate ends on Thursday, which will impact around 30 British diplomats who work there, along with their family members, the sources said.

Potential Consequences and Responses

If the consulate is closed, Britain is likely to respond by expelling a similar number of Israeli diplomats from Israel's embassy to the United Kingdom, the sources said, speaking on the condition of anonymity.

The sources did not say how quickly Britain would act if the consulate closes. After Britain announced the sanctions, Israeli Foreign Minister Gideon Saar accused London of interfering in this month's Israeli general election.

The British foreign office did not respond to a request for comment. The Israeli foreign ministry declined to comment. An Israeli official said any action against Israel would be met with a response.

Impact on UK-Israel Relations

The British sanctions announcement, ​and Israel's response, marked a new low in the relationship between the once steadfast allies. Britain has repeatedly criticised Israel over its actions ​in the war in Gaza and over Israeli settler attacks on Palestinians. Israel's government has accused Britain's governing Labour party of being hostile towards Israel.

Role and History of the British Consulate

The British consulate, in the ​Sheikh Jarrah neighbourhood of East Jerusalem, handles the country's relations with Palestinians in ​the city as ⁠well as in the West Bank and Gaza. It also provides consular services to Palestinians.

The consulate has been in Jerusalem for almost 200 years, long before the State of Israel was established in 1948.

Efforts to Prevent Closure

Reuters reported on Monday that Britain's top national security adviser, Jonathan Powell, had quietly visited Israel last week in a bid to keep the consulate open but failed to reach an agreement. A fifth source said Britain was still hopeful an agreement could be reached.

Two other sources said that Britain has asked European countries to raise the issue with Israel in hope of convincing the government to reverse its decision.

A spokesperson for Israeli Foreign Minister Gideon Saar told Reuters on Monday the consulate would close on Thursday.

Sanctions and International Reactions

In announcing the sanctions, Britain said that Israel's actions were undermining the possibility of a two-state solution — the idea of a Palestinian state co-existing peacefully alongside Israel. Prime Minister Benjamin Netanyahu's government ​openly rejects the idea of ​Palestinian statehood.

Britain, which recognised the State of Palestine last year, cited Israeli ⁠government-backed projects to expand settlements and rising settler attacks targeting Palestinians in the West Bank. The British sanctions are to take effect next year.

France and Canada joined in announcing sanctions. Israel has not taken action against Paris or Ottawa.

Broader Implications for Israeli Settlements

The incident highlighted growing frustration among Israel's longtime allies over its settlements in the occupied West Bank, territory Israel captured in a 1967 war. Nearly all countries and all UN bodies view the settlements as illegal under international law, which Israel disputes.

(Reporting by Alexander CornwellEditing by Peter Graff)

Key Takeaways

  • Britain announced sanctions targeting trade with Israeli settlements, prompting Israel to order the closure of the British consulate in East Jerusalem within 30 days — Israel called the move interference in its election
  • If the consulate closes this Thursday, the UK threatens a tit‑for‑tat expulsion of up to 27 Israeli diplomats from London, equivalent to staff impacted in Jerusalem
  • This escalation underscores deepening strain in UK‑Israel relations amid disagreements over settlement policy and two‑state solution efforts

Frequently Asked Questions

Why might Britain expel Israeli diplomats?
Britain may expel Israeli diplomats if Israel proceeds with closing the British consulate in East Jerusalem due to a sanctions dispute.
What triggered the consulate closure order by Israel?
Israel ordered the closure after Britain announced sanctions banning trade in goods made in Israeli settlements in the West Bank.
How many British diplomats could be affected by the consulate closure?
Around 30 British diplomats and their families would be affected if the consulate is closed.
Has Britain implemented sanctions against other countries involved in the settlement dispute?
France and Canada joined Britain in announcing sanctions, but Israel has not taken action against Paris or Ottawa.
What role does the British consulate in East Jerusalem serve?
It manages UK relations with Palestinians in Jerusalem, the West Bank, and Gaza, and provides consular services.

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