They guy is in a foreign country. The local police asks him to identify himself with the passport. He refuses. Simply put. Israel is not the US. In Israel its is the law to carry an ID with you at all times! It is a criminal offense not to do so. WE see from the video that he was asked to show the cops his ID, he declined, making the stupid excuse he will call the Ambassador. He is not a diplomat in Israel, but a tourist. As the old saying say it: "When in Rome, do as the Romans do". He refuses and got arrested.
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