"The strike is over, all embassies will be open tomorrow", the ministry's press service said.
According to the press service, a court has ruled that the parties involved, namely the Finance Ministry and the Trade Union of the Foreign Ministry Employees, must find a solution to this controversial issue within 25 days.
All Israeli embassies and consulates around the world closed down on Wednesday as diplomats went on strike in a dispute with the Finance Ministry over a decision to impose a tax on expense stipends paid to staff members if they are not backed by receipts.
The strike comes amid Prime Minister Benjamin Netanyahu’s failure to form a government, with the possibility of a third early election being underway.