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Israel has ordered 19 British diplomats to leave following a diplomatic dispute over UK sanctions targeting West Bank settlements Leonid Altman/Instagram

Israel has forced 19 British diplomats and the UK's consul general to leave the country following a bitter diplomatic dispute over sanctions targeting Israeli settlements in the occupied West Bank.

The confrontation has resulted in the downgrading of Britain's historic consulate in East Jerusalem, which has operated since 1839, although last-minute negotiations prevented its complete closure.

The agreement, announced on Thursday, 8 October, allows Britain to maintain a reduced diplomatic presence under a new name, despite Israel's insistence that the consulate has lost its previous diplomatic status.

Israel Strips British Consulate of Diplomatic Status

Israeli Foreign Minister Gideon Saar confirmed that the British Consulate General would cease operating in its previous capacity, with no more than seven diplomats permitted to remain at the renamed UK Mission in Jerusalem.

The decision followed Britain's announcement in September of sanctions targeting Israeli settlements in the occupied West Bank, including restrictions on settlement-produced goods and measures against individuals and companies involved in settlement expansion.

Israel responded by giving Britain 30 days to close its East Jerusalem consulate, threatening a major diplomatic confrontation between the longstanding allies. Saar defended the retaliation, arguing that Israel could not allow punitive measures against it to go unanswered.

'It is not possible to act against Israel without Israel taking appropriate measures in response,' Saar said.

He blamed the British Labour government for the deterioration in relations, maintaining that Israel had followed through on its threatened diplomatic response.

Britain Rejects Israel's Authority to Close Consulate

British Foreign Secretary Ed Miliband challenged Israel's position, insisting that the government had no legal authority to shut down the historic diplomatic facility.

'We do not accept that the Government of Israel has the legal right to close the British Consulate General in Jerusalem,' Miliband said.

He reaffirmed Britain's longstanding position that East Jerusalem remains occupied territory, rejecting Israeli sovereignty over the area.

Despite the diplomatic downgrade, Miliband confirmed that the renamed UK Mission would remain independent and operational, continuing its work with Palestinian communities.

Britain also intends to rebuild its diplomatic presence in the coming months. However, questions remain over the accreditation and diplomatic immunity of the seven remaining diplomats, with Israeli officials yet to publicly clarify their protections.

Miliband said Britain would avoid retaliatory measures while credible negotiations with Israel continued.

Why Britain's Historic Jerusalem Consulate Matters

Established in 1839 under Ottoman rule, Britain's Jerusalem consulate predates the creation of Israel in 1948 by more than a century.

The mission has historically operated independently of the British Embassy in Tel Aviv, serving as London's principal diplomatic connection with Palestinian officials in East Jerusalem, the West Bank and Gaza.

Its status remains politically sensitive because Israel captured East Jerusalem during the 1967 Six-Day War and subsequently annexed it, a move Britain and much of the international community do not recognise.

Israel's Diplomatic Feud With Europe Deepens

The dispute reflects broader tensions between Israel and European governments over settlement expansion and Palestinian statehood. Eleven other Western countries joined Britain in announcing sanctions or proposed restrictions targeting Israeli settlements.

Spain has withdrawn its ambassador from Israel and imposed an arms embargo, while France's recognition of Palestinian statehood has drawn criticism from Israel. Ireland and Norway have also faced diplomatic tensions with Israel over Palestinian recognition.

Israeli political scientist Jonathan Rynhold told CBS News that economic and security interests helped both governments avoid a complete diplomatic breakdown.