The ambassador was summoned back to Spain last September amid a diplomatic ​row over Spanish measures banning aircraft and ships ​carrying weapons to Israel from its ports ⁠or airspace due to Israel’s military offensive in ​Gaza, which Israeli Foreign Minister Gideon Sa’ar denounced ​as antisemitic.

On Tuesday, Spain published an announcement in its official gazette that the ambassador’s position had been terminated. Spain’s Foreign ​Ministry said its embassy in Tel Aviv ​will be led by a charge d’affaires for the foreseeable ‌future.

The answer to your question is no. Spain just has very little investment in trade with both Isntreal and US so they have the enviable position to be able to tell both countries neonazi leaders to sod off without significant repercussions.