Former attorney general tells Foreign Office Israel has no right to close UK consulate in East Jerusalem

Dominic Grieve has advised the Foreign Office that Israel is not legally entitled to shut the British consulate in East Jerusalem, after Israel said it would close the mission in response to a UK ban on goods from settlements.

Former attorney general Dominic Grieve has advised the UK Foreign Office that Israel does not have a legal entitlement to close the British consulate in East Jerusalem, according to officials.

Israel has said it plans to shut the consulate on 8 October in retaliation for a decision by the foreign secretary, Ed Miliband, earlier this month to prohibit trade in goods produced in Israeli settlements. The move by London, characterised by ministers as a measure to uphold international law, has already prompted a sharp diplomatic response from Israel.

Grieve, who served as the government's chief legal adviser, provided the opinion to the Foreign Office as ministers and officials consider how to respond to Israel's announced action. His advice frames the planned closure as a question of legal entitlement in relation to a diplomatic facility located in territory the UK regards as occupied Palestinian territory.

The dispute adds to growing tensions between the two governments over policy toward settlements and the status of East Jerusalem. Closure of a UK diplomatic mission would represent a significant escalation, raising questions about consular access, diplomatic immunities and the practical delivery of services to those who use the consulate.

Foreign Office officials have not publicly set out what steps they will take in response to Grieve's advice. The situation is likely to remain under close review in London as the 8 October deadline approaches and as both sides consider the diplomatic and legal ramifications of the announced measures.