Israel, Britain settle Jerusalem consulate standoff with downgrade

Israel has withdrawn its threat to close the British consulate in Jerusalem after the two sides agreed to rename it a mission with reduced staff.

• Israeli Foreign Minister Gideon Sa'ar threatened to close the consulate over UK settlement sanctions, and London threatened to expel Israeli diplomats.
• Under the compromise, the consulate will be renamed a British "mission" with fewer diplomats while retaining independence from the embassy in Tel Aviv.
• The Palestinian Foreign Ministry has rejected Israel's measures, affirming East Jerusalem as part of occupied Palestinian territory and demanding the consulate's previous status be restored.
• UK Foreign Secretary Ed Miliband said the sanctions' timing was tied to tenders for the E1 settlement project.