Since sharing it, Mr Iqbal said: “I have no recollection of sharing this video and have no idea how it was shared on my Facebook page.
"I apologise to anyone who was affected by seeing this material."
A Labour Party spokesperson for the West Midlands said: “Councillor Iqbal has apologised, we accept his explanation of what happened and we have reminded him of his responsibilities as a Labour councillor.”
Vice President of the Board of Deputies, Marie van der Zyl, said: "This case continues to raise questions about the robustness of Labour's disciplinary procedures.
"It seems a fairly pathetic excuse that Cllr Iqbal has 'no idea of how it was shared' on his own Facebook page. Perhaps he wants to tell us 'the Zionists did it'?
"Labour has an antisemitism problem and if it keeps letting people get away with it the shame of racism will continue to rot the core of what is supposed to be a proudly progressive party."
