Prime Minister Benjamin Netanyahu ordered the closure of Israel's embassy in Paraguay on Wednesday, hours after the Latin American nation's new government announced it would move its embassy back to Tel Aviv from Jerusalem.
"Israel views with the utmost gravity the extraordinary decision by Paraguay, which will cloud bilateral relations," Netanyahu said.
Paraguay's decision comes just months after it relocated its embassy to the capital in May, becoming the third country to do so – after the United States and Guatemala. It comes just weeks after President Mario Abdo Benítez was sworn in as the country's new leader.
Abdo Benítez defended his decision on Monday as part of an effort to support "broad, lasting and just peace" among Israelis and Palestinians.
"Paraguay is a country of principles," Abdo Benítez tweeted.
The status of Jerusalem is considered one of the thorniest obstacles to forging a peace deal between Israel and the Palestinians, who envision east Jerusalem as the future capital of a Palestinian state. Israel captured the eastern part of the city during the Six-Day War and annexed it in 1980.
In December, U.S. President Donald Trump recognized Jerusalem as Israel's capital, reversing decades of U.S. policy and sparking fury in the Arab world and among Western allies. The United States inaugurated a new embassy in Jerusalem on May 14. Guatemala followed suit shortly thereafter and then Paraguay opened an embassy there as well.
Yesh Atid leader Yair Lapid backed Netanyahu and condemned Paraguay's decision on Wednesday, saying: "We have only one capital and no other capital, a united Jerusalem."
MK Ayelet Nahmias-Verbin (Zionist Union) attacked Netanyahu saying: "Diplomatic relations should not be founded on tantrums; despite Paraguay's unfortunate decision, it must not be used as a pretext for cutting diplomatic ties."
Paraguay's foreign minister called Israel's reaction "disproportionate."
Abdo Benítez, who took office last month, belongs to the same conservative party as his predecessor Horacio Cartes, who inaugurated Paraguay's new embassy in Jerusalem in May.
Palestinian Foreign Minister Riad Malki has pushed the new Paraguayan president to reverse his predecessor's embassy relocation and restore the Paraguayan mission to Tel Aviv, the Palestinian foreign ministry said Wednesday, hailing Abdo Benítez's announcement as "a new Palestinian diplomatic achievement."
Malki met Abdo Benítez two weeks ago, the ministry said.
"Minister Malki exerted a big effort during his meeting with the new president, who instructed his foreign minister to arrange the issue," the Palestinian ministry said.
