Officers attended the incident in East Street, Shoreham, on January 25 at around 1.25pm.
A local woman in her 50s was reported to have been assaulted and left “shaken” by the incident, police said.
It is being treated as an antisemitic hate crime.
READ MORE: Family’s flat graffitied with abuse in ‘disgusting, racist attack’
A 43-year-old man has been arrested on suspicion of committing assault and causing racially/religious aggravated fear by provocation of violence by words.
He has been released on bail pending further enquiries.
A spokesman for Sussex Police said: “Officers would like to thank all those who came forward with information to assist the investigation.”
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