
Israel Orders British Consulate Closed and Eyes Retaliation Against France as Settlement Trade Sanctions Spark Diplomatic Showdown
Israel is expected to take retaliatory steps against France and other countries backing trade restrictions on Israeli settlements, according to a KAN report cited by The Jerusalem Post. The potential move would widen a confrontation that has already put Britain’s diplomatic presence in Jerusalem and its role in Gaza coordination in jeopardy.
Britain has been given 30 days to close its Jerusalem consulate, Reuters reported, citing Israeli officials and other sources familiar with the decision. Comparable measures against France and Canada have not yet been publicly announced.

Foreign Minister Gideon Sa’ar’s response to London includes removing British representatives from the Civil-Military Coordination Center in Kiryat Gat, ending British training of Palestinian Authority security forces and imposing entry bans on selected British nationals. Sa’ar said the response was coordinated with Prime Minister Benjamin Netanyahu and accused Britain of “blatant interference in the affairs of a sovereign state and its electoral process.”
The confrontation follows a coordinated declaration by 12 countries supporting, planning or actively considering national or European restrictions on goods from settlements in Judea and Samaria. Britain, France and Canada specifically committed to national measures banning settlement trade. That does not mean all 12 countries have already implemented identical sanctions.
Britain’s package reaches beyond goods on supermarket shelves. Foreign Secretary Ed Miliband said it would target companies and individuals providing financing, construction, infrastructure and real-estate services for settlement expansion, alongside a ban on advertising settlements in Britain. He said the broader legislation would be in place within six to nine months, while additional sanctions against extremist settlers were announced immediately.

France has announced a process to end trade with settlements, but its implementation timetable and final rules remain unclear. Paris moved toward national restrictions after efforts to secure an EU-wide decision failed to attract sufficient support, with Germany among the countries opposing that route.
The participating governments argue that settlement expansion, violence against Palestinians and the E1 development project threaten a two-state solution. Their joint statement also recognizes Israel’s legitimate security interests and condemns Hamas’ Oct. 7 terrorist massacre. Miliband said the restrictions target settlements rather than Israel as a whole and explicitly opposed the broader boycott, divestment and sanctions campaign.
The fallout is already extending beyond commerce. A British official told KAN that London sent personnel to the Gaza coordination center at Washington’s request, including a senior officer serving as deputy commander. The official argued that removing them would not help advance the American initiative for Gaza.
There could also be consequences for Palestinian livelihoods. A date farmer at Kibbutz Almog told Reuters that losing access to European markets could force his business to close, threatening the jobs of Palestinian workers he employs.