Israel closes UK consulate in Jerusalem over trade ban on illegal settlements

The move deepens an already strained diplomatic rift between Israel and Britain over the Gaza war, settlement expansion and settler violence. Relations plunged to a new low after Britain recognised a Palestinian state in 2025.

In Short

• UK, France, Canada block imports from West Bank settlements
• Israel bans 12 top UK officials from entering country
• US warns trade restrictions may destabilise West Bank

Israel said on Tuesday it would close the British consulate in East Jerusalem after the UK, France and Canada announced plans to block imports from Israeli settlements in the occupied West Bank.

The move deepens an already bitter diplomatic rift between Israel and Britain over the Gaza war and rising settler violence in the West Bank. Relations plunged to a new low after Britain recognised a Palestinian state in 2025.

The consulate represents Britain in its dealings with the Palestinian Authority. Its closure is part of a wider set of measures announced by Israeli Foreign Minister Gideon Sa’ar in response to Britain’s decision.

Israel will also exclude Britain from a US-led mission monitoring the Gaza ceasefire and end British training for Palestinian Authority security forces.

Israel will also bar 12 elected British officials, including former Labour leader Jeremy Corbyn, and other UK citizens over alleged “antisemitic and anti-Israel activity”.

“The British move is morally distorted and constitutes blatant interference in the affairs of a sovereign state and its electoral process,” Sa’ar said.

He also rejected British Foreign Secretary Ed Miliband’s allegation that Palestinians were being ethnically cleansed from parts of the West Bank, calling it an “outrageous lie”.

The United States, meanwhile, warned that the trade restrictions could destabilise the West Bank. Secretary of State Marco Rubio said Washington would not join its NATO allies in banning settlement goods.

UK, FRANCE AND CANADA TARGET SETTLEMENT GOODS

Britain, France and Canada announced the trade restrictions in response to the expansion of Israeli settlements and rising violence in the West Bank.

The three countries were joined by the foreign ministers of 10 other nations, including Denmark, Norway, Poland, Spain and Sweden, in reaffirming support for a two-state solution.

“Together, we are resolute: the two-state solution must be protected, and we will take action in pursuit of a just and lasting peace,” they said.

Miliband said Britain could no longer merely condemn the expansion of settlements, which he said threatened the viability of a Palestinian state.

“Today we refuse to be bystanders to further suffering and to the destruction of the two-state solution,” he said.

Canadian Foreign Minister Anita Anand said Israeli settlements undermined efforts to achieve lasting peace, while France cited the “frenzied expansion” of settlements and a “flare-up of violence” in the West Bank.

The UN, Palestinians and most countries regard Israeli settlements in the occupied West Bank as illegal under international law.

TRADE RESTRICTIONS LARGELY SYMBOLIC

West Bank settlements mainly export agricultural products, including dates, citrus fruits, herbs and wine. These account for only a small share of Israel’s overall exports.

The restrictions are therefore unlikely to significantly affect wider trade with Israel but carry diplomatic weight amid efforts to preserve the two-state solution.

The announcement came as Israel unveiled plans to build 1,000 additional homes in the West Bank. Concern has centred on the E1 settlement project near Jerusalem, which critics say would divide territory sought by Palestinians for a future state.

Miliband said the British legislation would take effect within six to nine months. Britain also immediately sanctioned several extremist settlers accused of supporting violence.

- Ends