Israel may withdraw defense and security cooperation with the United Kingdom should Prime Minister Keir Starmer recognize a Palestinian state, diplomatic sources told The Times on Thursday.

According to the report, Prime Minister Benjamin Netanyahu's government is examining potential options for retaliation against the UK's intention to recognize a Palestinian state in September.

In July, Starmer said that Britain would recognize the state of Palestine unless Israel allows for more humanitarian aid into Gaza, stops Jewish settlement in the West Bank, and agrees to a ceasefire and commits to long-term peace. 

An official told The Times that the UK and other countries seeking to recognize Palestinian statehood must "carefully consider" the consequences of that action.

The Times cited another source as saying, "London needs to be careful because [Benjamin Netanyahu] and his ministers have cards they could play too. Israel values its partnership with the UK, but recent decisions mean it is coming under pressure, and the UK has a lot to lose if Israel's government decides to take steps in response."

British Prime Minister, Keir Starmer speaks to military personnel during a visit to a military base training Ukrainian troops, April 22, 2025 in the West of England, Britain.
British Prime Minister, Keir Starmer speaks to military personnel during a visit to a military base training Ukrainian troops, April 22, 2025 in the West of England, Britain. (credit: Finnbarr Webster/Pool via Reuters)

The report added that Israel's potential withdrawal of security and defense cooperation with Britain would have significant economic and security implications.

Mossad provided information on Iranian threats, resulting in counter-terror raids 

For example, Israeli intelligence has provided significant information to UK spy agencies about Iranian-backed threats. The Times said that Mossad has passed crucial information to British counterparts that thwarted an Iranian-linked terrorist plot on the Israeli embassy in London, resulting in large counterterror raids in the UK. 

Additionally, the UK has used Israeli-made drones for surveillance operations in Iraq and Afghanistan, along with Israeli defense equipment, saving the lives of British soldiers.

Israeli companies have also sold weapons systems, parts, and software to British firms such as BAE (British Aerospace Public Limited Company), and the overall trading partnership between the two countries is worth 6 billion pounds and supports 38,000 jobs.