Spain will investigate companies that advertise products or services in the country that originate in the Israeli-occupied Palestinian territories, its government said on Tuesday.

The measure follows the approval of a decree last week that bans the promotion of such goods and services in Spain to prevent firms from benefiting from the occupation, the Consumer Ministry said in a statement.

The decree is part of a package of measures laid out by Prime Minister Pedro Sanchez's government and which includes an arms embargo on Israel aimed at halting the genocide in Gaza.

Consumer Affairs Minister Pablo Bustinduy said earlier this year his office would use "all necessary resources" to ensure no company operating in Spain profits from the occupation.

"No firm should have its balance sheet stained with the blood of the Palestinian people," the statement quoted him as saying at an event in July.

The United Nations on Friday released an update of its database of companies with activities in Israeli settlements in Palestinian territories, listing 158 firms from 11 nations.

But one of the Spanish firms cited, builder ACS, swiftly requested to be removed from the list, saying it had in 2021 sold its subsidiary, SEMI, that operates in Israel.

"ACS does not carry out any activity in Israel or in the Israeli settlements," the company, led by Real Madrid President Florentino Perez, said in a statement.

Most of the international community considers Israeli settlements in the West Bank illegal under international law.

Spain is one of the most vocal critics in Europe of Israel's genocidal campaign in Gaza that has so far killed more than 66,000 Palestinians, mostly women and children.

Israel's attacks have destroyed vast areas of Gaza, displacing around 90% of the population amid a catastrophic humanitarian crisis, with experts saying Gaza City is experiencing famine.

Spain's government has urged the international community to impose sanctions on Israel to halt the war in Gaza. Sanchez has criticized Europe for failing to take sufficient action.

Spain has said it will investigate human rights violations in Gaza to support the International Criminal Court's pursuit of arrest warrants for Israeli officials accused of war crimes.

Earlier this month, the Spanish Defense Ministry canceled two contracts worth nearly $1.1 billion with Israeli companies.