The German government announced it will suspend its arms deals with Israel, citing the Gaza Strip’s humanitarian crisis and the occupation plan of the territory.

“Th even tougher military action by the Israeli army in the Gaza strip, which was decided last night by the Israeli Security Cabinet, makes it increasingly difficult for the [German] Federal Government to see how these goals can be achieved,” a statement by German Chancellor Friedrich Merz read. 

“Under these circumstances, the German government will not authorize any exports of military equipment that could be used in the Gaza Strip until further notice.”

Israeli Prime Minister Benjamin Netanyahu decried the decision, saying that Germany is “rewarding terrorism.”

According to NPR, Germany is the second largest arms trader with Israel behind the United States.

This comes as Slovenia, an E.U. partner with Germany, banned all arms sales with Israel last week.

This story is developing. Check back for updates.