Germany is halting further military exports to Israel that could be used in the Gaza Strip in response to Israel’s plan to fully occupy the Palestinian enclave.

Chancellor Friedrich Merz said on Friday that the exports were frozen “until further notice” and expressed concern for the plight of Gaza’s Palestinians, who are suffering under Israeli-imposed starvation.

Germany is Israel's second largest supplier of arms, following the US.

Merz said it was Israel's right to disarm Hamas and seek the release of its captives in Gaza, but that these goals have become harder to achieve due to Israel's planned military action.

"The German government believes that the even tougher military action in the Gaza Strip decided upon by the Israeli cabinet last night makes it increasingly difficult to see how these goals can be achieved," Merz said in a statement.