Spain has canceled a defense contract worth around €700 million ($825 million) to purchase Israeli-designed rocket launchers, according to official documents reviewed by AFP on Monday.

The move follows Prime Minister Pedro Sánchez’s announcement last week that his government will introduce legislation banning the purchase or sale of military equipment with Israel, citing what he described as a “war of extermination” in Gaza.

The cancellation marks a significant escalation in diplomatic tensions between Madrid and Tel Aviv, as Sánchez continues to push for an immediate ceasefire and stronger protection for Palestinian civilians.