Core Points - The European Union (EU) announced a package of sanctions against Israeli officials and settlers, including the suspension of trade preferences for Israeli goods exported to the EU [1] - The EU's decision is in response to Israel's blockade of humanitarian aid to Gaza, which has led to a severe humanitarian crisis [1] - The EU plans to invoke its "global human rights sanctions mechanism" to target Israeli officials labeled as "extremist ministers" and violent settlers, as well as ten members of Hamas's political bureau [1] Economic Impact - The EU intends to suspend key provisions of the EU-Israel Association Agreement related to trade, meaning Israeli goods will no longer enjoy preferential treatment [1] - This change will align the tariff rates for Israeli goods with the standard EU rates, which could significantly impact Israeli exports [1] - In 2024, the total value of Israeli goods exported to the EU is projected to be €15.9 billion, accounting for 32% of Israel's total foreign trade, with major exports including machinery, transport equipment, and chemicals [1]