BRUSSELS/JERUSALEM/UNITED NATIONS/GAZA/AMMAN/CAIRO - The European Commission said on Wednesday that it has submitted a proposal to the Council of the European Union (EU), recommending a partial suspension of trade preferences granted to Israel, and sanctions on certain Israeli ministers, settlers and related entities.

According to a senior EU official, the move does not amount to halting trade with Israel, but to suspending its preferential treatment under the EU-Israel Association Agreement. Once implemented, Israeli exports to the EU would fall under the World Trade Organization's most-favored-nation (MFN) rules, resulting in higher tariffs.

According to EU trade data, Israel's goods exports to the EU amounted to about 15.9 billion euros ($18.8 billion) in 2024. The EU is Israel's largest trading partner, accounting for roughly 32 percent of its global trade.

The Commission estimates that, if trade volumes remain unchanged, Israeli exporters would face around 220 million euros in additional tariffs annually, affecting about 37 percent of exports to the EU, which are mainly agricultural products such as fruits, vegetables and nuts.

The Commission said that the measures are a reaction to Israel's breach of the EU-Israel Association Agreement, citing its impact on the humanitarian crisis in Gaza and the erosion of the two-state solution.

In addition, the Commission proposed sanctions against two Israeli ministers -- National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich -- as well as certain violent settlers and related entities. The EU also plans to add 10 Hamas political bureau members to its sanctions list, subjecting them to asset freezes and travel bans.

Under EU rules, the trade measures must be adopted by a qualified majority in the Council of the European Union and will formally enter into force 30 days after notifying the EU-Israel Association Council. 

Assault on Gaza City

Israeli soldiers and tanks pressed into Gaza City on Wednesday, striking the city and demolishing multi-story buildings, Israeli officials said, as the Palestinian death toll in the nearly two-year-old offensive surpassed 65,000.

Gaza's health authorities reported at least 98 people were killed by Israeli fire in the past 24 hours and 385 others wounded, bringing the total death toll in the enclave to 65,062, with 165,697 injured.

The Israeli military said its air force and artillery struck Gaza City more than 150 times over the past two days before ground troops began advancing on Tuesday. Israel has carried out multiple air and ground attacks in Gaza City, but the military said Hamas has regrouped and thousands of militants remain in the city.

Video footage showed high-rise buildings reduced to rubble in areas hosting tent camps sheltering thousands of repeatedly displaced Palestinians.

Defense Minister Israel Katz said troops demolished 25 towers in Tuesday's opening assault to "remove any sniper threat above the maneuvering forces." He added: "If Hamas does not release the hostages and disarm itself, Gaza will be destroyed and will become a tombstone."

Katz repeated a call for residents to evacuate south "for their own protection." Israeli officials estimate 350,000 people have fled the city, while the UN humanitarian agency OCHA said monitoring partners observed "more than 190,000" people moving south between mid-August and Monday.

Separately, pro-settlement Finance Minister Bezalel Smotrich said a plan presented to US President Donald Trump envisions turning Gaza into a "real estate bonanza." Speaking at a real estate conference in Eilat, he said he had begun discussions with US officials on a business plan for the Gaza Strip, stating: "We paid a lot of money for the war, so we need to decide how to divide the profits from the land in Gaza. We've done the demolition stage, now it's time to build."

The proposal drew sharp international criticism, echoing earlier suggestions by Trump to clear Palestinians from Gaza and develop the strip as a seaside resort.  

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Growing toll 

The escalating Israeli bombardments and ground operations in Gaza City are taking a growing toll on Palestinians, UN humanitarians said Wednesday.

The Rantisi Children's Hospital in Gaza City was struck multiple times overnight, said the UN Office for the Coordination of Humanitarian Affairs (OCHA), quoting the Gaza health authorities. There were 80 patients at the facility, including 12 children and infants in intensive care. Half of the patients and their caregivers were forced to flee, under fire, in search of safety.

The UN Population Fund (UNFPA) said Israel's military offensive in Gaza is forcing women to give birth in the streets, without hospitals, doctors or clean water. It said that 23,000 women are going without care, and about 15 babies are being born each week with no medical help.

OCHA said its humanitarian partners reported that since the collapse of the ceasefire in March, 80 medical points and primary health care centers providing sexual and reproductive health outpatient services have been affected, with 65 out of service.

At least 13 Palestinians killed 

At least 13 Palestinians were killed and several others wounded on Wednesday when an Israeli army strike targeted a vehicle carrying a displaced family near the entrance of Al-Shifa hospital in western Gaza City, medical sources and eyewitnesses said.

The sources said an Israeli drone hit the vehicle as the family tried to flee south, killing most of those on board. The wounded and bodies were taken to the hospital.

The strike followed a similar attack on Tuesday, when another vehicle carrying a displaced family in western Gaza City was hit, leaving five dead and several injured after the car caught fire, according to Gaza health authorities.

Jordan, Qatar urge Gaza ceasefire

King Abdullah II of Jordan and Qatari Emir Sheikh Tamim bin Hamad Al Thani met here on Wednesday, during which the two sides jointly called for an immediate ceasefire in Gaza and vowed to strengthen bilateral cooperation, according to separate statements from both countries.

A statement released by Jordan's Royal Hashemite Court said the king condemned the recent Israeli strike on Qatar's Doha, denounced Israel's expanded ground offensive in Gaza City, and warned against Israeli violations of the holy sites in Jerusalem.

He stressed the need for an immediate ceasefire in Gaza and unhindered humanitarian aid into the enclave, and expressed Jordan's support for mediation efforts by Qatar, among others, in ending the Gaza war, read the statement.

Both leaders reaffirmed their backing for Palestinians' legitimate rights, read the statement.

The two sides also affirmed their commitment to strengthening economic and investment cooperation, and called for activating the Jordanian-Qatari Joint Higher Committee, read the statement.

Calling the meeting "constructive," the Emiri Diwan, the administrative office of the Qatari emir, said on social media platform X that the two sides stressed on coordinating bilateral efforts and strengthening joint Arab action to confront the looming risks to the region.

The priority should be to end the Palestinians' suffering, through finding a peaceful and comprehensive solution to their just cause, in accordance with the decisions of international legitimacy, the office said.

Egypt, Spain urge Gaza ceasefire

Egyptian President Abdel-Fattah al-Sisi and Spanish King Felipe VI on Wednesday called for an immediate ceasefire in the Gaza Strip, the release of hostages, and unhindered delivery of humanitarian aid, the Egyptian presidency said.

In a closed-door meeting at Al Ittihadiya Presidential Palace, the two leaders warned that forced displacement of Palestinians would worsen regional instability and trigger illegal migration toward Europe. They also denounced Israeli settlement expansion and threats to annex Palestinian territories in the West Bank as "a flagrant violation of international law."

Sisi praised Spain's support for a just and comprehensive Middle East peace, including its recognition of the State of Palestine in May 2024. King Felipe VI commended Egypt's efforts over the past two years to broker a Gaza ceasefire and prepare a reconstruction plan.

The leaders also reaffirmed "categorical rejection of attempts to displace Palestinians from their land," citing the broader implications for Palestinian rights and neighboring countries' security.

King Felipe VI and Queen Letizia were formally received by Sisi at a ceremony marked by a 21-gun salute and honour guard. The king's visit is the first by a Spanish monarch to Egypt and follows the elevation of bilateral ties to a strategic partnership after Sisi visited Madrid in February.