Netanyahu’s office said in a statement posted on X that the European Union had demonstrated what it described as a "moral bankruptcy” by drawing what Israel considers a false comparison between Israeli civilians and militants from Hamas. The statement argued that Israel and the United States were "fighting for civilization” against Iranian-backed extremism across the region.

Israeli Foreign Minister Gideon Sa'ar separately criticized the European measures, calling the sanctions "arbitrary and political.” In remarks published on X, Sa’ar said the European Union had unfairly targeted Israeli citizens and organizations over their political positions without sufficient legal justification.

"The comparison chosen by the European Union between Israeli citizens and Hamas terrorists is completely distorted morally,” Sa’ar stated.

Earlier on Monday, Kaja Kallas announced that EU foreign ministers had reached agreement on a new sanctions package directed at violent Israeli settlers in the West Bank as well as senior Hamas figures. Kallas said the measures were intended to address escalating extremism and violence in the Palestinian territories.

Diplomatic officials in Brussels said the sanctions package includes restrictions against three Israeli settlers and four settlement-linked organizations, though the identities of those targeted had not yet been publicly disclosed at the time of the announcement. European diplomats noted that the package had been delayed for months because of objections from Hungary’s previous government before recent political changes in Budapest reopened negotiations.

European governments have increasingly expressed concern over reports of attacks by extremist settlers against Palestinian communities in the West Bank. Aid organizations and monitoring groups have documented incidents involving arson, assaults, and property destruction in several Palestinian villages during recent months, amid heightened regional tensions linked to the war in Gaza.

Speaking to Diplomat News Network, a Brussels-based European diplomatic official familiar with the discussions said EU member states sought to demonstrate that "violence by any actor undermining civilian safety and regional stability will carry consequences.” The official spoke on condition of attribution because internal deliberations were still ongoing.

In Tel Aviv, political analysts said the dispute could deepen tensions between Israel and several European capitals already divided over the Gaza conflict and broader Middle East policy. Observers noted that the sanctions debate reflects widening international scrutiny over settlement activity and security conditions in the West Bank, an issue that continues to affect diplomatic relations between Israel and its Western partners.