Spain's Prime Minister Pedro Sanchez has imposed sweeping sanctions on Israel, including a full arms embargo and airspace restrictions, accusing it of committing "genocide" in Gaza.

The diplomatic tensions escalated on Monday as Israel labeled the measures "antisemitic" and banned two Spanish ministers from entry to the country, prompting Madrid to recall its ambassador from Tel Aviv.

Israel strongly denies the genocide allegation, which is currently being examined at the International Court of Justice.

Spain's sanctions package imposes a complete arms embargo on Israel, blocks ships or aircraft bound for the country and carrying weapons or fuel for the military forces passing through Spanish territory, and prohibits goods from Israeli settlements.

Sanchez also pledged increased aid through the United Nations refugee agency and Palestinian authority, and announced travel bans on those he accused of involvement in what he termed for the first time publicly as genocide.

"We hope that these measures will serve to add pressure on Prime Minister (Benjamin) Netanyahu and his government to alleviate some of the suffering that the Palestinian population is enduring," Sanchez said on Monday.

"It is one thing to protect your country and quite another to bomb hospitals and starve innocent children. This is an unjustifiable attack on the civilian population, which the UN rapporteur describes as genocide."

Among European nations, Spain has been one of the most vocal critics of Israel's military campaign in Gaza, launched after Hamas's unprecedented attack of Oct 7, 2023.

Sanchez added: "60,000 dead, 2 million displaced from their homes, half of them minors. This is not self-defense, it is not even an attack, it is the extermination of a defenseless people and a violation of all the laws of international law."

Israel's Foreign Minister Gideon Sa'ar slammed the move and accused Sanchez of deploying "a continuous anti-Israel and antisemitic campaign" to distract from domestic scandals.

"The attempt by Sanchez's corrupt administration to divert attention from serious corruption scandals through a continuous anti-Israel and antisemitic campaign is transparent," Sa'ar wrote on X.

Spain, one of the first European nations to recognize Palestine as a state in May 2024, recalled its ambassador from Tel Aviv following Sa'ar's remarks.

Israel announced entry bans for two Spanish ministers — Deputy Prime Minister and Labor Minister Yolanda Diaz, and Youth Minister Sira Rego.

"Today we put a red line here, demonstrating we will not take it from them anymore," Sa'ar said.

Spain's Foreign Ministry dismissed Israel's response, saying it "strongly rejects the false and slanderous accusations of antisemitism" and "would not be intimidated in its defense of peace, international law and human rights".

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