Turkey has announced a complete suspension of all trade with Israel, citing the ongoing military offensive in Gaza and the worsening humanitarian crisis in the strip. The move, described by the Turkish Trade Ministry as the "second phase" of measures against Israel, will remain in force until Israel allows an uninterrupted and sufficient flow of humanitarian aid to Gaza. The decision has drawn sharp criticism from Israeli officials, with Foreign Minister Israel Katz accusing Turkish President Recep Tayyip Erdogan of behaving like a "dictator" and disregarding international trade agreements.

The trade suspension, which covers all products and transactions between the two countries, is expected to have a significant impact on their bilateral trade, which stood at $6.8 billion in 2023. Turkish ports have already begun preventing the export of goods to Haifa and Ashdod ports, while Israeli goods arriving in Turkey are not being unloaded, according to sources familiar with the matter.

In response to Turkey's decision, Foreign Minister Katz instructed the Foreign Ministry Director General, Yaakov Blitshtein, to "immediately engage with all relevant parties in the government to create alternatives for trade with Turkey, focusing on local production and imports from other countries." Katz pledged that Israel would emerge with a "strong and daring economy," stating, "We Win, and They Lose."

Turkey has been one of the harshest critics of Israel during the war against Hamas, with Erdogan branding Israel a "terrorist state" and accusing it of committing "genocide" against Palestinians in Gaza. The Turkish leader has also defended Hamas, which is considered a terrorist organization by Israel, the United States, and the European Union, calling it "a liberation group."

The trade suspension follows Turkey's earlier announcement of export trade restrictions on 54 products to Israel, including cement, steel, aluminum, iron construction materials, and equipment. Turkey's exports to Israel stood at $5.43 billion last year, down from $7.03 billion in 2022, according to the Turkish Exporters' Union and statistics agency Turkstat.

Erdogan's repeated attacks on Israel during the campaign trail ahead of local elections held on March 31 have been seen as a factor in his party's significant defeat, with the Islam-based Yeniden Refah (New Welfare) Party gaining seats in the Turkish parliament and fielding its own candidates in the March elections. The party's leader, Fatih Erbakan, criticized Erdogan for maintaining Turkish trade with Israel despite the war in Gaza, stating, "The result of this election was decided by the behavior of those who continued to trade freely with Israel and the Zionist murderers."

The trade suspension comes amid increasing international criticism of Israel over the humanitarian situation in Gaza. A recent UN-backed assessment warned that 1.1 million people in the strip were facing catastrophic hunger, with famine imminent in northern Gaza by May. The United States has been working to facilitate aid deliveries, with the White House announcing that a pier built by the US military to facilitate the flow of aid into the territory would be open within days.

However, the UN has emphasized that a maritime corridor can never be a substitute for delivery by land, and that land routes are the only way to bring in the bulk of supplies needed. Israel recently reopened the Erez Crossing into the northern Gaza strip for aid convoys, following pressure from its Western allies and repeated appeals from international aid organizations. However, Jordan reported that some of its aid lorries were attacked by Israeli settlers before reaching the crossing.

As mediators await a response from Hamas to the latest ceasefire proposal, which reportedly involves a 40-day ceasefire and the release of more than 30 Israeli hostages in exchange for many more Palestinian prisoners, the suspension of trade between Turkey and Israel adds another layer of complexity to the ongoing conflict and its impact on the region's economy and humanitarian situation.