Britain paused free trade talks with Israel, summoned its ambassador, and announced further sanctions against occupied West Bank settlers as its foreign minister condemned a "monstrous" military escalation in Gaza.
The Israeli military announced the start of a new operation last week, and medics in Gaza say Israeli strikes have killed more than 500 people in the past eight days.
Israel has also blocked the entry of medical, food and fuel supplies into Gaza since the start of March, prompting international experts to warn of looming famine, although some trucks were allowed to enter on Monday.
Foreign Minister David Lammy said on Tuesday the offensive was "a dark new phase in this conflict", called for Israel to end the blockade of aid and condemned comments by finance minister Bezalel Smotrich on the possible cleansing and destruction of Gaza and relocation of its residents to third countries.
"It is extremism. It is dangerous. It is repellent. It is monstrous, and I condemn it in the strongest possible terms," a visibly angry Lammy told lawmakers, adding the operation in Gaza was "incompatible with the principles that underpin our bilateral relationship".
"Today, I'm announcing that we have suspended negotiations with the Israeli government on a new free trade agreement."
Israel said Britain had not advanced the trade talks, which started formally in 2022 under a previous Conservative British government, for some time.
"The British Mandate ended exactly 77 years ago," a spokesperson for its foreign ministry said. "External pressure will not divert Israel from its path in defending its existence and security against enemies who seek its destruction."
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Key components of F-35 jets Israel uses to bomb Gaza — including the refuelling probe, laser targeting system, tyres, and rear fuselage — are all made in Britain, activists say.
EU cutting ties
The European Union, on the other hand, will launch a review of its granting trade privileges to Israel amid mounting concern over the humanitarian crisis in Gaza, the bloc's foreign policy chief announced on Tuesday.
"It is clear from today's discussion that there is a strong majority in favour of review of Article Two of our Association Agreement with Israel. So we will launch this exercise," Kaja Kallas told a press conference after an EU Foreign Affairs Council meeting in Brussels.
"In the meantime, it is up to Israel to unblock the humanitarian aid. Saving lives must be our top priority," she added.
Kallas described the humanitarian situation in Gaza as "catastrophic" and said EU-funded aid was being blocked at the borders.
"The aid that Israel has allowed in is, of course, welcome, but it's a drop in the ocean. Aid must flow immediately, without obstruction and at scale, because this is what is needed," she added.

Supported by Amnesty, Human Rights Watch, Oxfam and others, the Palestinian rights association Al Haq is seeking a court order to stop the government's export of UK-made components for Lockheed Martin F-35 fighter jets.