Bloomberg: Israel's key allies consider arms bans, trade curbs over Gaza war

Some of Israel’s staunchest European supporters — including the UK, Netherlands, France, and now Germany — are increasingly voicing criticism of Prime Minister Benjamin Netanyahu’s handling of conflict in Gaza, weighing curbs on trade and arms sales.

Germany’s considering restrictions on military exports to Israel, which is particularly notable given its historic position that defending Israel is a post-Holocaust responsibility. German Chancellor Friedrich Merz, in his government’s first critical comments since the start of the war, said the humanitarian situation in Gaza could “no longer be justified by a fight against Hamas terrorism.” The condemnation is symbolic of the shift in Europe and of Israel’s increasing isolation, Bloomberg writes.

Merz, who spoke directly with Netanyahu on June 1, stressed that it was “necessary to allow sufficient humanitarian aid into the Gaza Strip immediately.” 

The shift highlights Israel’s growing isolation on the world stage. European public opinion has turned sharply, with a recent Civey poll for Germany’s Tagesspiegel newspaper showing that more than half of respondents oppose continued arms exports to Israel. Similar sentiment is growing across other European nations, fueling mass protests. The Netherlands last month witnessed one of its largest demonstrations in years, as tens of thousands demanded an end to the war.

“It’s simply become impossible for most European governments to continue supporting Israel’s war despite strong ongoing commitments to Israel’s security,” said Julien Barnes-Dacey, program director for the Middle East and North Africa at the European Council on Foreign Relations.

In May, EU foreign policy chief Kaja Kallas said there was “a strong majority” in favour of reviewing the bloc’s trade agreement with Israel. Merz echoed this momentum, suggesting Germany could back such a move. The EU is Israel’s largest trading partner, exchanging $47 billion in goods in 2024, according to the International Monetary Fund.

Meanwhile, the UK has announced a pause in its free-trade talks with Israel and imposed sanctions on individuals and entities it accused of violence against Palestinians in the West Bank.

Hungary is expected to oppose EU sanctions, and European defence companies risk economic fallout from cutting arms sales. There are also concerns about possible retaliatory measures from Israel, a key supplier of air-defence and military technologies to Europe.

By Sabina Mammadli