U.K. and Israel appear to reach tense truce, but diplomatic feud highlights Israel’s strained ties with Europe

October 8, 2026 / 12:02 PM EDT / CBS News

London and Tel Aviv — The U.K. and Israel appeared Thursday to have narrowly avoided a major diplomatic confrontation, reaching a compromise to allow Britain's nearly 200-year-old consulate in east Jerusalem to remain open, but under a new name and with a significantly reduced staff.

Israel had threatened to shut the facility down completely in a dispute over British sanctions barring the import of goods from Israeli settlements in the occupied West Bank.

The agreement — which has been framed very differently by London and Tel Aviv — may prevent the tension between the two longstanding allies from escalating, but it has highlighted how strained ties have become between Israel and several European governments over Israel's ongoing actions in the Palestinian territories.

Israeli Foreign Minister Gideon Saar said talks with the U.K. had taken place "with the aim of preventing further deterioration in relations," following weeks of escalating tension.

The dispute began in September when London announced sanctions — along with 11 other Western nations — targeting Israeli settlements in the West Bank. The measures include a ban on goods produced in the settlements and sanctions against companies and individuals…

Original source: https://www.cbsnews.com/world/