The announcement from the airline comes after a BA flight from London to Israel was forced to turn back just moments before it reached Tel Aviv due to security concerns.
Flight BA165 had to change course back to Heathrow amid Hamas launching a fresh wave of rocket attacks.
A BA spokesman said: 'Safety is always our highest priority and following the latest assessment of the situation, we're suspending our flights to and from Tel Aviv.
'We're contacting customers booked to travel to or from Tel Aviv to apologise for the inconvenience and offer options including a full refund and rebooking with another airline or with British Airways at a later date.
'We continue to monitor the situation in the region closely.'
It has joined many international airlines who have suspended flights to Tel Aviv since the shocking attack by Hamas on Israel on Saturday.
The BA165 flight (not pictured) had almost reached Tel Aviv when it was forced to turn back to London Heathrow due to safety concerns
The BA165 flight (not pictured) had almost reached Tel Aviv when it was forced to turn back to London Heathrow due to safety concerns
It comes after Hamas launched a fresh wave of rocket attacks on Israel which included bombing a child development centre (pictured: Smoke rises following an Israeli airstrike in Gaza City)
After flight BA165A was diverted, BA said: 'Safety is always our highest priority and we've taken the decision to return our Tel Aviv flight to Heathrow.'
Flight-tracking website Flightradar showed the flight was near northern city Haifa when it made a U-turn. It was due to land at 3.05pm.
A spokesperson for Israel's airports authority said rockets were flying around Tel Aviv at the time but were not an immediate threat to the flight or to Ben Gurion Airport.
The diversion back to Britain was the pilot's decision and no other flights have been diverted, the spokesperson said.
Other carriers such as easyJet and Wizz Air suspended flights to and from Tel Aviv after the Hamas attacks on Saturday, meaning UK citizens trying to fly home from Israel face a struggle to book flights.
EasyJet usually serves Gatwick, Luton and Manchester airports from the Israeli city but has paused operations on those routes.Wizz Air, which normally connects Israel with Gatwick and Luton, has also suspended those flights.
Virgin Atlantic is continuing to operate flights between Heathrow and Tel Aviv.
BA, owned by IAG, had said earlier on Monday it was monitoring the situation in Israel very closely but would continue to operate some flights, but has now announced it is suspending flights to and from Israel.
The Government has not provided an estimate on how many UK citizens are in Israel.A travel industry source said the number of UK tourists in Israel is low.
Israel's ministry of tourism said it is 'committed to ensuring that all tourists visiting Israel are safe and informed'.It added it is operating a 'hotline via WhatsApp for tourists' on +972 55 972 6931.