Israel’s parliament has voted to ban the UN relief and works agency (Unrwa) from the country within 90 days, in defiance of US and other international pressure to maintain the largest provider of humanitarian assistance to the country’s Palestinian population.

In a 92-10 vote late on Monday, the Knesset banned the agency, which operates in Israel according to a 1967 treaty, from conducting “any activity” or providing any service inside Israel, including the areas of annexed East Jerusalem, Gaza and the West Bank.

Israeli lawmakers also voted to declare Unrwa a terror group, effectively banning any direct interaction between the UN agency and the Israeli state.

Taken together, the legislation – which will not come into effect immediately – is expected to lead to the closure of Unrwa’s East Jerusalem headquarters and would effectively block the delivery of humanitarian aid into Gaza via Rafah. The severing of diplomatic relations would preclude Israel from issuing entry and work permits to foreign Unrwa staff and prevent coordination with the Israeli military to permit aid shipments.

More than 1.9 million Palestinians are displaced and the Gaza Strip faces widespread shortages of food, water and medicine.

“It’s outrageous that a member state of the United Nations is working to dismantle a UN agency which also happens to be the largest responder in the humanitarian operation in Gaza,” Juliette Touma, spokesperson for Unrwa, said in a statement.

In a statement, Philippe Lazzarini, the Commissioner-General of Unrwa, called the vote “unprecedented” and said it “sets a dangerous precedent”.

“These bills will only deepen the suffering of Palestinians, especially in Gaza where people have been going through more than a year of sheer hell,” he said.

Keir Starmer, the prime minister, said the UK was “gravely concerned” that the bill had passed, adding: “This legislation risks making Unrwa’s essential work for Palestinians impossible, jeopardising the entire international humanitarian response in Gaza and delivery of essential health and education services in the West Bank.

“The humanitarian situation in Gaza is simply unacceptable. We need to see an immediate ceasefire, the release of the hostages and a significant increase in aid to Gaza. Under its international obligations, Israel must ensure sufficient aid reaches civilians in Gaza.”

Speaking at a daily briefing, the US state department spokesperson, Matthew Miller, said Washington was “deeply concerned” about the vote and had urged Israel to “pause implementation” of the legislation, which could “have implications under US law”.

US law prevents Washington from providing military aid to countries that restrict US humanitarian assistance, although that legislation is rarely enforced.

During the briefing, Miller said that Unrwa had an “irreplaceable” role in providing aid to the Gaza Strip.

The legislation, which was co-sponsored by members of the rightwing Yisrael Beiteinu and Likud parties, followed allegations by Israel that members of the Unrwa staff in Gaza were involved in the 7 October Hamas attacks that led to the deaths of more than 1,200 Israelis and the kidnapping of hundreds more.

Israel responded to the Hamas raid with military operations in the Gaza Strip that have sparked a humanitarian crisis, leading to the deaths of more than 43,000 civilians.

“Unrwa workers involved in terrorist activities against Israel must be held accountable,” the Israeli prime minister, Benjamin Netanyahu, said in a statement. “Since avoiding a humanitarian crisis is also essential, sustained humanitarian aid must remain available in Gaza now and in the future.”

“In the 90 days before this legislation takes effect – and after – we stand ready to work with our international partners to ensure Israel continues to facilitate humanitarian aid to civilians in Gaza in a way that does not threaten Israel’s security,” he said.

The UN launched an investigation into the Israeli claims and fired nine Unrwa staff as a result. The allegations also led the US and EU to briefly halt funding to the agency.

Unrwa was established in 1949 to provide aid to hundreds of thousands of Palestinian refugees displaced after the 1948 Arab-Israeli war. The agency now provides services to millions of Palestinians in Israel and nearby countries, many of whom remain stateless and live in refugee camps. It has 13,000 staff in the Gaza Strip.

On Sunday, the foreign ministers of Canada, Australia, France, Germany, Japan, South Korea and the UK all voiced their opposition to the legislation and said it could lead to “devastating consequences”.

Unrwa “provides essential and life-saving humanitarian aid and basic services to Palestinian refugees in Gaza, East Jerusalem, the West Bank and throughout the region”, the foreign ministers said in a statement before the vote. “Without its work, the provision of such assistance and services, including education, health care, and fuel distribution in Gaza and the West Bank would be severely hampered if not impossible, with devastating consequences on an already critical and rapidly deteriorating humanitarian situation, particularly in northern Gaza.”

“It is crucial that Unrwa and other UN organisations and agencies be fully able to deliver humanitarian aid and their assistance to those who need it most, fulfilling their mandates effectively,” the statement continued.

In the same statement, the foreign ministers, who include some of Israel’s closest allies, condemned the 7 October attacks and said that Unrwa had “taken steps to address allegations regarding individual employees’ support for terrorist organisations”.

“We call on Unrwa to continue its path of reform as a priority, demonstrating its commitment to the principle of neutrality, and ensure that its activities remain entirely in line with its mandate. We will continue to actively monitor and support this process,” the statement concluded.

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