Paul Adams: British-Israeli relations at lowest ebb in decades

Israel's furious response to the British government's decision to ban trade with Israeli settlements in the occupied West Bank testifies to just how important this moment is.

Britain took the brunt of Israel's anger, but the fact that 12 countries chose to move together clearly sharpened the sense of outrage.

Officials in London always knew that such a dramatic shift in policy towards Israel-Palestine was going to elicit a hostile response, but seemed taken aback by the speed and ferocity of Israel's reaction.

The closure of the UK's consulate in East Jerusalem, which serves the West Bank and deals directly with the Palestinian Authority in Ramallah, and the removal of British representatives from the International Gaza Support Centre, the body set up last year to co-ordinate stabilisation and relief efforts in the Gaza Strip, are very hostile moves.

They tell you that Israel is deeply troubled by Tuesday's action by the UK and 11 other countries, which include France, Spain and Canada.

Products manufactured in settlements may not represent a significant proportion of Israel's exports, but the political symbolism of singling these out for special treatment is powerful.

For decades, the British and other governments have regarded settlements in occupied Palestinian territory as illegal but stopped short of banning products grown or manufactured there.

Now, having announced that Britain agrees with the 2024 International Court of Justice ruling that the occupation as a whole - including Israel's military presence - is unlawful, Foreign Secretary Ed Miliband says the government's economic relationships must reflect that.