A view of the British Consulate in East Jerusalem, Sept. 9, 2026. Photo: REUTERS/Ammar Awad

Britain is considering expelling 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 Sept. 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 communities in the 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.

Britain is considering expelling Israeli diplomats from Israel’s embassy in London in response to any closure of the consulate, the sources said, speaking on condition of anonymity.

It would be a highly unusual step for allies to expel each other’s diplomats. Despite the current strains, the UK and Israel are close economic, security, and intelligence partners.

The British Foreign Office and the Israeli Foreign Ministry declined to comment. An Israeli official said any action against Israel would be met with a response.

UK HOPES CLOSURE CAN STILL BE AVERTED, SAYS SOURCE

A fifth source, also speaking on condition of anonymity, said Britain was still hopeful that an agreement could be reached to prevent the consulate from closing. If it did close, the source added, London was not expected to take any action until after Israel’s Oct. 27 election, if at all.

After Britain announced the sanctions, Israeli Foreign Minister Gideon Saar accused London of interfering in this month’s election. A spokesperson for Saar told Reuters on Monday the consulate would close on Thursday.

The British sanctions announcement, ​and Israel’s response, mark a new low in the relationship between the once steadfast allies. Britain has repeatedly criticized 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 toward Israel.

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, before the modern State of Israel was established in 1948.

Reuters reported on Monday that Britain’s top national security adviser, Jonathan Powell, had quietly visited Israel last week in an attempt to keep the consulate open but failed to reach an agreement.

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.

TWO-STATE SOLUTION

In announcing the sanctions, Britain said that Israel’s actions were undermining the possibility of a two-state solution to resolve the Israeli-Palestinian conflict.

Britain, which recognized a Palestinian state 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.

Regarding settler attacks, the violence remains smaller in scale than Palestinian terrorism targeting Israelis. Of the approximately 500,000 Jews living beyond the Green Line in the West Bank, a mere 70 are accused of engaging in violent organizing against Palestinian residents and around 300 others are considered to be involved.

However, senior Israeli security officials have increasingly warned that it nevertheless constitutes a distinct threat to Israeli security and the settlement enterprise itself.