The City, by Incubator Theatre, described as a "hip-hop opera", had been due to run at the Underbelly Cow Barn until August 25.
However, after protests on Wednesday it was cancelled at the venue and now Underbelly are looking for alternative accommodation.
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A letter signed by 50 cultural figures had urged the venue to cancel the show, as Incubator Theatre receives funding from the Israeli government.
The protests affected other venues and made the show "untenable", Underbelly said.
Incubator said in a statement: "The nature of the demonstration which accompanied the performance, whilst it may have been legal, was carefully designed and managed to intimidate members of the public and it succeeded in causing maximum disruption to other artists and other shows in the vicinity.
"We appreciate the efforts of Underbelly to find an alternative space and hope that performances of The City will continue shortly."