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Why did Israel close its Jerusalem consulate?

Israel closed its East Jerusalem consulate as a direct retaliatory response to Britain's new trade sanctions on Israeli settlements in the West Bank, which Foreign Secretary Ed Miliband announced alongside a group of other countries [1, 3]. The closure came alongside other Israeli measures, including expelling British forces from a Gaza peacebuilding role and barring twelve British MPs from entering the country [2]. It has pushed UK-Israel relations to their lowest point in decades [4].

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