The United Kingdom has threatened to respond with a reciprocal expulsion of Israeli diplomats following Israel’s planned closure of the UK consulate in East Jerusalem later this week. Reports suggest that the UK could expel up to 27 Israeli diplomats in retaliation, potentially marking one of the most severe downturns in British-Israeli diplomatic relations since Israel’s establishment.

The diplomatic crisis stems from the UK’s recent decision to ban trade in goods originating from Israeli settlements in the occupied West Bank, alongside sanctions targeting British companies involved in supporting settlement construction. In response, Israel announced it would close the UK consulate in East Jerusalem, which carries a distinct role separate from the British embassy in Tel Aviv, covering East Jerusalem, the West Bank, and Gaza. The consulate is located in the Sheikh Jarrah neighborhood of East Jerusalem.

Israel’s Foreign Minister Gideon Sa’ar condemned the UK’s sanctions as “morally distorted” and accused the UK Labour Party of hostility toward Israel. Israeli officials have also expressed their intention to revoke the credentials of diplomats from the Netherlands following the Dutch government’s similar trade restrictions against settlements. France and Canada, which have also imposed bans on settlement goods, have so far not faced retaliation.

The UK government has refrained from confirming the reported plans for mass expulsions, with the Foreign Office describing the matter as speculative. However, it was noted that former UK Attorney General Dominic Grieve advised that Israel’s closure of the consulate could be unlawful, given that East Jerusalem is recognized by the United Nations and the UK as occupied Palestinian territory. This legal perspective positions the consulate’s status as representing Palestinian interests distinct from Israeli sovereignty.

Efforts to de-escalate the situation included a visit last week by UK National Security Adviser Jonathan Powell to Jerusalem, where he sought to persuade Israel to delay or cancel the consulate’s closure. These talks were unsuccessful. It has been reported that Powell opposed Foreign Secretary Ed Miliband’s decision to proceed with the settlement trade ban, fearing it might bolster Prime Minister Benjamin Netanyahu’s standing ahead of Israel’s national elections on October 27. Although the impact of the sanctions on the electoral campaign remains uncertain, reciprocal diplomatic expulsions could intensify public attention on the dispute.

The episode highlights mounting international criticism of Israel’s settlement policies in the occupied territories, widely viewed as illegal under international law. Miliband has spoken openly against settlement expansion, accusing settler groups, backed by Netanyahu’s government, of committing ethnic cleansing in the West Bank—a characterization disputed by Israel. The UK has also scaled back arms export licenses to Israel amid concerns over conduct during the conflict in Gaza, though Miliband has stopped short of labeling actions there as genocide, deferring such judgments to international judicial bodies.

The diplomatic fallout underscores increasing tensions between Israel and some of its traditional Western allies over settlement activities and broader regional policies. The coming weeks are expected to see further developments as both sides respond to the evolving dispute.