Diplomatic tensions between Britain and Israel have escalated sharply over the past week as negotiations failed to resolve a dispute over the planned closure of the British Consulate General in occupied East Jerusalem.

Israel has ordered the mission to close by Oct. 8 and instructed its British diplomats to leave, prompting London to pursue private negotiations while reportedly warning it could retaliate by expelling Israeli diplomats. The dispute represents one of the most serious confrontations between Britain and Israel in decades.

The confrontation began with Britain's decision under Prime Minister Andy Burnham's government to prohibit trade involving illegal Israeli settlements in the occupied West Bank.

It has since expanded into a dispute involving Jerusalem's status, diplomatic representation to the Palestinians and relations between the two countries.

Since October 2023, British foreign policy toward Israel and Palestine has undergone significant changes.

What began under Rishi Sunak’s Conservative administration as strong diplomatic and military support for Tel Aviv has transformed into what some experts call one of the most significant pivots in modern British diplomacy.

The arrival of Prime Minister Andy Burnham and Foreign Secretary Ed Miliband this summer brought a sharper tone to Britain’s policy toward Israel, building on cautious changes introduced under Keir Starmer.

Britain, France and Canada announced measures on Sept. 8 targeting goods produced in illegal Israeli settlements in the occupied West Bank.

The British measures include a ban on settlement goods and services and sanctions against individuals and companies accused of supporting, facilitating or profiting from settlement activity.

London said the measures were intended to protect the possibility of a two-state solution amid continued settlement construction and increasing violence against Palestinians in the occupied West Bank.

Miliband said London could no longer limit its response to statements of concern and accused Israel of carrying out "ethnic cleansing" in parts of the West Bank. He also called illegal occupiers "terrorists." Israel rejected the allegations and disputed the British position that settlements are illegal under international law.

Israeli Foreign Minister Gideon Saar described the measures as "morally distorted" and accused Britain's Labour government of interfering in Israel's domestic affairs ahead of its Oct. 27 general election.

Israel ordered Britain to close its consulate in occupied East Jerusalem within 30 days and required the diplomats working there to leave. The order is scheduled to take effect Thursday.

Israel also removed British representatives from an international coordination center for Gaza in Kiryat Gat and ended British participation in training Palestinian Authority security forces in the occupied West Bank. It also barred 12 British politicians and other nationals from entering Israel.

The Israeli measures were directed specifically at Britain, despite France and Canada joining the restrictions on settlement trade.

Israel said the British officials subjected to entry bans had been involved in antisemitic or anti-Israel activity or had denied Israel's right to exist.

Meanwhile, Israel's diplomatic mission in London has been operating without a permanent ambassador for more than a year. The British Consulate General operates separately from the British Embassy to Israel in Tel Aviv.

It manages Britain's diplomatic relations with Palestinians in occupied East Jerusalem, the occupied West Bank and the Gaza Strip.

The mission also conducts political, economic and security work and provides consular services to Palestinians.

Located in occupied East Jerusalem's Sheikh Jarrah neighborhood, the mission represents a British diplomatic presence in Jerusalem dating back nearly two centuries.

Its separate status reflects Britain's position that sovereignty over Jerusalem has not been finally determined and must be settled through negotiations.

Britain recognizes Israel's de facto authority in West Jerusalem but does not recognize Israeli sovereignty over Jerusalem as a whole. Palestinians seek occupied East Jerusalem as the capital of a future state.

The consulate's closure would affect Britain's ability to conduct direct diplomacy with Palestinians and challenge London's established position on Jerusalem's status.

British National Security Adviser Jonathan Powell reportedly made an undisclosed visit to Israel to seek an agreement preventing the consulate's closure. ld discussions with Israeli officials, but the talks failed to produce a settlement. Diplomatic contacts have continued, although Israel has publicly maintained that the mission will close as scheduled. A spokesperson for Saar said the Oct. 8 deadline remained in force. Britain has said it is seeking to keep the consulate open but has not disclosed details of the negotiations.

Local employees have reportedly been dismissed, while British diplomats have been preparing to leave if the order is implemented.

Israeli news outlet Ynet reported that British Ambassador to Israel Simon Walters warned Israeli officials that London could expel 27 diplomats from the Israeli Embassy if the consulate were forced to close.

Under the reported proposal, Britain would expel one Israeli diplomat for each of the 27 British diplomats affected by Israel's decision.

Such a measure could severely restrict the Israeli Embassy's operations because its diplomatic staff is only slightly larger than the number reportedly facing expulsion.

The British Foreign, Commonwealth and Development Office, however, did not confirm the reported threat when approached by Anadolu.

"I would steer you away from rumors. We would not comment on speculation or live discussions," a spokesperson said Tuesday.

British officials have reportedly been particularly angered by Israel's decision to give London only 30 days to close the consulate.

The UK government has maintained that the consulate plays an important role in its engagement with Palestinians and that its closure would undermine longstanding diplomatic and humanitarian work.

Referring to the Israeli government's response to Britain's sanctions measures, Miliband said in September: "I regret what the Israeli government has announced, but I'm proud of what we did and it was the right thing to do." He also previously rejected speculation about possible British retaliation over the consulate.

"I do not want to speculate on this, but we do not want this to happen. It would damage the very important work that we are doing, helping people in those communities," he said.

"The consulate has been there for nearly 200 years. And this is a long-standing position that we have had. And so, you know, this is a conversation we continue to have, but we do not want this to happen." Experts say Britain could attempt to conduct its relations with Palestinians through another office, potentially in Ramallah.

However, they say such an arrangement would reduce its direct diplomatic presence in Jerusalem and could be seen as accepting an Israeli decision over the mission's status.

London could also proceed with the reported expulsion of Israeli diplomats, impose further sanctions or take other reciprocal measures.

Israel could respond with additional restrictions on British officials or institutions, creating a cycle of retaliation.

A compromise could involve delaying the closure, modifying the consulate's status or allowing its personnel to continue operating under a different diplomatic arrangement. No such agreement had been announced ahead of the deadline.

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