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Along with the United States, Australia, Canada, United Kingdom and Italy has suspended financing of the United Nations agency for Palestinian refugees (UNRWA) on Saturday.
Taking to X, Italy's Foreign Minister Antonio Tajani said, "The Italian government has suspended financing of the UNRWA after the atrocious attack on Israel on 7 October.”
The move follows after it was alleged that UNRWA's staff were involved in the October 7 attacks by Hamas in Israel.
Amid the suspensions, Hussein al-Sheikh, secretary general of the Palestine Liberation Organisation (PLO) said that the decision entails great political and humanitarian relief risks.
Israel foreign minister said that his nation would seek to stop UNRWA from operating in Gaza after the war.
UNRWA said on Friday it had severed ties with the staff members accused by Israel of involvement in the 7 October Hamas attack.
Meanwhile, Israel continued its attacks in south Gaza. Heavy aerial and tank fire across Khan Younis dominated the region on Saturday.
The Israeli military said it killed at least 11 gunmen who were trying to plant explosives near troops and other firing rifles and rocket-propelled grenades at soldiers in Khan Younis.
Even hospitals in Khan Younis are being attacked by the troops. At least three people were killed in Israeli strikes near Rafah border region, where people are taking shelters in tents.
According to the Gaza Health Ministry, at least 26,257 Palestinians were killed so far in the Israel-Hamas war.
Hamas said in a statement that Israel is on a "campaign of incitement" against UN agencies delivering aid to Palestinians in the Gaza Strip.