Overview

• The European Commission unveiled a package to suspend trade preferences for Israel, reimpose tariffs on a large share of its exports, and sanction two ministers, violent settlers, and 10 Hamas leaders.
• Targeted measures would freeze assets and impose EU travel bans on National Security Minister Itamar Ben-Gvir, Finance Minister Bezalel Smotrich, and designated individuals linked to violence.
• The Commission said it would immediately halt Commission-controlled bilateral funding to Israel worth tens of millions, while broader steps still require member-state backing.
• Deep divisions among EU governments threaten the plan, with reporting pointing to likely resistance on trade measures and possible vetoes on sanctions.
• Israel condemned the proposal as “morally and politically distorted,” and Tel Aviv’s stock index fell about 2 percent following the announcement.