Caretaker foreign minister Caspar Veldkamp has told the Nederlands Dagblad that Israeli plans to occupy Gaza City would be “a wrong move,” but rejected calls from some MPs for further sanctions.

“I cannot impose new measures after every shot that is fired,” the minister said.

Veldkamp criticised the Israeli decision, saying that a ceasefire would be the most effective way of freeing the remaining hostages from “Hamas claws”, getting humanitarian aid into Gaza and “ending this terrible war”.

The Netherlands, he said, continues to believe that coordinated action, such as limiting trade, would be more effective, and said again the Netherlands has already gone further than some countries by sanctioning two Israeli ministers and restricting arms exports.

HIs statement came as German chancellor Friedrich Merz said Berlin would block all military exports that could be used in Gaza following the Israeli government’s latest statement. Merz called for a ceasefire and the release of hostages, while warning Israel not to take further steps towards annexing the West Bank.

Earlier on Friday it emerged that the Dutch foreign ministry has withdrawn three licences for the export of naval ship components to Israel, in what Veldkamp described as a “unique” step.

A ministry spokesperson told current affairs show Nieuwsuur the licences were reviewed and cancelled last month “due to the deteriorating situation in the Gaza Strip” and “the risk of undesirable end use.” The granting of export permits for weapons or parts to Israel is controversial because of their possible use in the war in Gaza.

Since the Hamas attacks on Israel in October 2023, the government has approved eight export licences for military goods destined for Israel, including parts for the Iron Dome missile defence system, alongside the three that were recently withdrawn.

Eleven applications have been refused in that period, Veldkamp told MPs in a briefing last week.

The Netherlands does continue to export specially trained dogs to Israel, despite growing pressure to restrict the trade due to concerns about their use by the Israeli military in human rights abuses, Nieuwsuur reported in June.