By Elizabeth Piper and Sachin Ravikumar

LONDON (Reuters) -Britain and four other nations imposed sanctions on Tuesday on two far-right Israeli cabinet ministers, Itamar Ben-Gvir and Bezalel Smotrich, accusing them of repeatedly inciting violence against Palestinians in the West Bank.

Canada, Australia, New Zealand and Norway joined Britain in freezing the assets and imposing travel bans on Israel's national security minister Ben-Gvir and finance minister Smotrich, both West Bank settlers.

Signalling a rare split with its close British ally, U.S. Secretary of State Marco Rubio wrote on X that the U.S. condemned the move. He said it would not advance U.S.-led efforts to achieve a ceasefire in Gaza, end the war there and bring home hostages Palestinian Hamas militants abducted from Israel 20 months ago.

"We reject any notion of equivalence: Hamas is a terrorist organisation... We remind our partners not to forget who the real enemy is," Rubio said, demanding a withdrawal of the sanctions.

British foreign minister David Lammy, in a joint statement with the foreign ministers of the other four nations, said Ben-Gvir and Smotrich had "incited extremist violence and serious abuses of Palestinian human rights. These actions are not acceptable.

"This is why we have taken action now to hold those responsible to account," the statement said.

Two sources with direct knowledge of the matter said the sanctions included targeted financial restrictions and travel bans.

Israel's foreign minister, Gideon Saar, said the action by the five countries was "outrageous" and the Israeli government would hold a special meeting early next week to decide how to respond.

Smotrich, speaking at the inauguration of a new West Bank Jewish settlement in the Hebron Hills, spoke of "contempt" for Britain's move. "We are determined, God willing, to continue building," he said.

As the five nations announced action against the Israeli ministers, the United States imposed sanctions on a leading Palestinian human rights organization as well as five charity groups in the Middle East and Europe, accusing them of supporting Palestinian militants including Hamas.

'EGREGIOUS'

Last month, the leaders of Britain, France and Canada put pressure on Israeli Prime Minister Benjamin Netanyahu's government to end a blockade on aid into Gaza, where international experts have said famine is imminent, promising "concrete action" if a new military offensive did not stop.

London also suspended free trade talks with Israel for pursuing "egregious policies" in the occupied West Bank and Gaza, and announced further sanctions against West Bank settlers.

In response, Netanyahu accused them of wanting to help Hamas and "being on the wrong side of history".

Tuesday's joint statement said their action was focused on curbing violence by Israeli settlers in the West Bank and was aimed solely at individuals who "undermine Israel's own security". But it added the measures could not be seen in isolation of events in Gaza.

"We continue to be appalled by the immense suffering of civilians, including the denial of essential aid," it said. "There must be no unlawful transfer of Palestinians from Gaza or within the West Bank, nor any reduction in the territory of the Gaza Strip."

The foreign ministers said they still wanted "a strong friendship with the people of Israel based on shared ties, values and commitment to (its) security and future".

"We will strive to achieve an immediate ceasefire in Gaza, the immediate release of the remaining hostages by Hamas, which can have no future role in the governance of Gaza, a surge in aid and a path to a two-state solution," the statement said.

Ben-Gvir and Smotrich have previously clashed with Netanyahu, both calling for the permanent conquest of Gaza and re-establishment of the Jewish settlements there that Israel abandoned in 2005, notions that the Israeli leader has rejected.

Israel began its offensive in Gaza in response to the Hamas-led attack on southern Israel in October 2023 in which 1,200 people, mostly civilians, were killed, according to Israeli tallies, and 251 people were taken to Gaza and held hostage.

Israel's campaign has devastated much of Gaza and killed more than 54,000 Palestinians, according to Gaza health authorities.

(Reporting by Sachin Ravikumar; Additional reporting by Alexander Cornwell in Tel Aviv; Writing by Muvija M and Elizabeth Piper; Editing by Kate Holton, Michael Holden and Daniel Wallis)