Tensions spike as Israel targets Dutch diplomats following Netherlands ban on settlement goods

Tensions between Israel and the Netherlands have reached a new high in recent days after a Dutch ban on the import and trade of products originating from settlements in the West Bank, east Jerusalem, and the Golan Heights came into effect, prompting an unusual Israeli response, with Foreign Minister Gideon Sa'ar ordering Dutch diplomats working in Ramallah to return their Israeli-issued diplomatic documentation within seven days.

Once they return the documents, their diplomatic rights and immunities will expire.

The move follows an August decision to remove two Dutch representatives from the international Gaza support center in Kiryat Gat and illustrates how far relations have deteriorated with a country that for years was considered one of Israel's closest friends in Europe.

The current government, led by Rob Jetten, leader of the centrist liberal D66 party, took office in February 2026 following an election in which Geert Wilders's party lost ground. Despite its criticism of Israel, the government continues to support Israel's security, calls for Hamas to be disarmed, and advocates a two-state solution.

Wilders's victory ends with government's collapse

In the November 2023 election, Geert Wilders's Party for Freedom won 37 of the 150 seats in parliament, making it the country's largest party. Wilders, who strongly opposes immigration from Muslim countries and is identified with support for Israel, was nevertheless unable to become prime minister.

His potential coalition partners objected to his positions, and a right-wing coalition was eventually formed in July 2024 under Dick Schoof, a former senior security official who does not belong to a political party. Wilders's party was a senior coalition partner, but Wilders himself remained outside the government.

In June 2025, Wilders brought down the government after his coalition partners refused to adopt his demands for tougher immigration policies, including closing the borders to asylum-seekers.

In elections held in October, his party lost 11 seats, leaving it with 26, the same number as D66, which received more votes. Jetten formed a coalition with the center-right liberal People's Party for Freedom and Democracy (VVD) and the Christian Democratic Appeal (CDA).

The three parties, however, hold only 66 seats between them, making it a minority government dependent on opposition support.

Who is shaping policy toward Israel?

Alongside Jetten, two central figures shaping foreign policy are Foreign Minister Tom Berendsen, a member of the Christian Democratic Appeal, and Foreign Trade and Development Cooperation Minister Sjoerd Sjoerdsma of D66, who previously served as a diplomat in Ramallah. VVD leader Dilan Yeşilgöz serves as defense minister and deputy prime minister.

The diplomatic distancing from the Israeli government began even before Jetten took office. In August 2025, then-foreign minister Caspar Veldkamp resigned after failing to secure government support for additional measures against Israel over the war in Gaza and settlement expansion. Following his resignation, his colleagues from the New Social Contract (NSC) party also left the government.

From sanctions to a ban on settlement trade
The January 2026 coalition agreement stipulated that national and European sanctions against the Netanyahu government, its members, and associates would remain in effect until the government took significant steps toward peace and adherence to international law.

The government also pledged in the agreement to renew cooperation with UNRWA, oppose settlement expansion, and support the reconstruction of the Gaza Strip.

In May, the Netherlands joined a statement by nine Western countries condemning settlement expansion and calling on Israel to halt violence against Palestinian civilians and measures restricting the Palestinian economy.

On September 22, a Dutch ban came into effect on the import, purchase, and sale of products originating from settlements that the Netherlands considers illegal. The ban does not apply to all trade with Israel.

The Dutch government maintains, however, that it distinguishes between the Netanyahu government and the State of Israel. It supports the establishment of a Palestinian state alongside a secure Israel, condemns Hamas's October 7 attack, and demands that the terrorist organization disarm and play no role in Gaza's future government.

According to the government's position, formal recognition of a Palestinian state should form part of an agreed diplomatic process.

Immigration, Muslims, and domestic politics

Unlike Wilders, who previously blamed the Moroccan community following the attack on Maccabi Tel Aviv fans in Amsterdam and even called for those involved to be deported, the Jetten government emphasizes combating racism and antisemitism and cooperating with Jewish and Muslim communities.

At the same time, it is pursuing tougher immigration policies, including reducing the number of asylum-seekers, expanding options for deportation, and increasing oversight of religious figures who incite hatred.

Wilders, who has previously met with Prime Minister Benjamin Netanyahu and visited settlements, continues to advocate policies supportive of Israel but has no role in government.

Moreover, the change in Dutch policy has not eliminated domestic disagreements. Criticism has been voiced even within D66, with some arguing that the government is not putting sufficient pressure on Israel. A protest expressing that view interrupted Jetten's speech at his party's conference over the weekend.