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The European Commission has proposed sanctions against several Israeli Cabinet ministers and violent settlers, alongside a partial suspension of Israel’s trade privileges with the bloc.
Officials in Brussels say the move is aimed at easing the humanitarian crisis in Gaza rather than punishing Israel.
EU foreign policy chief Kaja Kallas said all member states agree the situation in Gaza is “untenable”:
“The aim is not to punish Israel. The aim is to improve the humanitarian situation in Gaza. The war must end, the suffering must stop, and the hostages must be released.”
She also criticised Israel’s military push into Gaza City, warning that the escalation would only deepen the crisis.
Trade concessions under threat
European Commissioner for Trade Maroš Šefčovič explained that the proposal would affect core parts of the Euro-Mediterranean Agreement, meaning Israeli goods would no longer enjoy preferential access to EU markets. Instead, they would face standard tariffs applied to any non-EU country without a trade deal.
The EU remains Israel’s largest trading partner, with goods trade reaching €42.6 billion in 2024. Šefčovič described the move as “a carefully considered response to an increasingly urgent situation”. The EU Council will decide on the proposal by qualified majority.
Sanctions and frozen funding
The Commission also announced sanctions on Hamas, extremist Israeli ministers and violent settlers. In addition, around €14 million in bilateral support earmarked for Israel between 2020 and 2024 will be halted.
Dubravka Suica, European Commissioner for the Mediterranean, stressed that this suspension applied only to the Israeli government, while funding for civil society, projects against antisemitism, and Holocaust remembrance initiatives such as Yad Vashem would remain unaffected.
EU Commission President Ursula von der Leyen said in a statement:
“The horrific events taking place in Gaza on a daily basis must stop. That is why we are proposing to suspend trade concessions with Israel, impose sanctions on extremist ministers and settlers, and freeze bilateral support.”
Humanitarian toll in Gaza
Since October 2023, Israeli military operations have killed almost 65,000 Palestinians in Gaza, most of them women and children. Relentless bombardment has rendered the enclave uninhabitable, triggering famine and the spread of disease.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 21st of July, covering the latest developments you need to know.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 22nd of July, covering the latest developments you need to know.
President Donald Trump said the United States will target Iran’s heavily fortified Pickaxe Mountain site “pretty soon” as he meets with Lebanese president Michel Aoun. Meanwhile, U.S. forces carried out a 10th consecutive night of strikes on Iran while Tehran continues to target Gulf countries.
The United States has bombed Iran for an 11th consecutive night as the Pentagon says the war’s cost reach $37.5 billion. President Donald Trump threatens a heavy strike on the suspected Pickaxe Mountain nuclear site. Tehran warns that any attack could trigger a wider regional escalation.
Azerbaijani President Ilham Aliyev and German President Frank-Walter Steinmeier have discussed regional developments, transport connectivity, energy cooperation and the Azerbaijan-Armenia peace process during talks in Berlin.
The building where Adolf Hitler was born, near Austria's border with Germany, officially began a new life as a police station on Wednesday. Austria's government hopes the conversion will prevent it from becoming a place of pilgrimage for neo-Nazis.
Daniel Siad, a modelling scout whose name appeared in documents linked to convicted sex offender Jeffrey Epstein, has been found dead at his home near Paris, French prosecutors said. He was 69.
Ukraine's new commander-in-chief, Mykhailo Drapatyi, takes charge at a pivotal stage of the war with Russia, facing mounting challenges including troop shortages, battlefield reform and the rapid evolution of drone warfare.
ASEAN foreign ministers opened the 59th ASEAN Foreign Ministers’ Meeting in Manila on 21 July, launching four days of talks that run until 24 July. The agenda includes South China Sea tensions, Myanmar’s conflict and growing U.S.-China rivalry.
Canadian Foreign Minister Anita Anand has renewed calls for an immediate de-escalation and permanent ceasefire in the Middle East while she warned that the humanitarian situation had become "quite grave". Anand also raised concern over tensions in the South China Sea.
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