Israel is revoking the diplomatic status of Dutch diplomats based in Ramallah in the occupied West Bank, giving them seven days to return their Israeli-issued documents over a Dutch ban on goods from Israeli settlements.
The Netherlands said Monday it regretted the move.
"I deeply regret this unnecessary decision," Dutch Foreign Minister Tom Berendsen said, adding that the import ban was "not directed against Israel."
The row is Israel's latest diplomatic response to European sanctions on settlement goods, after it ordered the closure of Britain's consulate in East Jerusalem earlier in September over similar measures.
Israeli Foreign Minister Gideon Sa'ar said Sunday that the Dutch Embassy had been informed of the decision.
"After this period, the diplomatic privileges and immunities granted to them by the State of Israel will expire," Sa'ar wrote on X.
"To the extent that the Netherlands wishes to continue representing its interests vis-à-vis the Palestinians, it can do so from the territories of the Palestinian Authority and not from the territory of the State of Israel," he said.
Sa'ar noted that Israel removed a Dutch delegation last month from an international support center for Gaza in Kiryat Gat over what he called Dutch government activity against Israel.
"Israel will not ignore moves intended to harm it," he said, adding, "Any country that acts in a hostile and unilateral manner against Israel will lose influence and relevance in the region."
He also accused the Dutch government of feeding antisemitism with what he called its "anti-Israel policy."
The Dutch ban, which took effect Sept. 22, prohibits the import, purchase and sale of goods from Israeli settlements in the West Bank, East Jerusalem and the Golan Heights. It covers personal baggage as well as commercial shipments and bars services that facilitate such trade.
Dutch customs officers searched passengers arriving at Amsterdam's Schiphol Airport on an El Al flight from Tel Aviv for settlement products, Israel's Channel 12 reported.
The broadcaster claimed that bringing such goods into the Netherlands could carry a prison sentence of up to six years.
U.S. Ambassador to Israel Mike Huckabee wrote on X that Dutch visitors at his church "have to check their souvenirs to make sure they aren't from Judea/Samaria-possible 6 yr prison term."
Dutch far-right Party for Freedom (PVV) leader Geert Wilders praised Sa'ar's decision.
"Well done @gidonsaar, unfortunately the Netherlands today is governed by Israel haters and Hamas-lovers, so your actions are totally justified," he wrote on X.
The Dutch measure followed a Sept. 14 announcement by 12 countries, including France, Britain and Canada, that they intend to impose trade restrictions on Israeli settlements. France and Canada have also announced bans, but Israel has not taken action against either country.
The United Nations has repeatedly affirmed that Israeli settlements in the occupied Palestinian territories are illegal under international law.
About 500,000 Israeli settlers live in the West Bank, excluding East Jerusalem, alongside three million Palestinians.
Israeli military and occupier attacks in the West Bank have intensified since the Gaza war began in October 2023.
At least 1,206 Palestinians, including 254 children, have been killed, about 13,350 wounded, and more than 24,600 arrested during that period, according to official Palestinian figures.