The Security Cabinet has also decided to reinforce police units and expand security operations against inciters and supporters of terrorism in Jerusalem.
The prime minister waited until Sunday, reportedly in order to give Deri time to decide whether or not to resign.
Israel’s response was just a matter of time and it came on Thursday when Prime Minister Benjamin Netanyahu convened his new security cabinet for the first time in Tel Aviv.
In the Gaza Strip, Hamas condemned the Israeli “punitive measures” as a “Zionist crime” against the rights of the Palestinians.
The Prime Minister's Office published information regarding the sanctions against the Palestinian Authority on Friday afternoon.
Move comes in response to Ramallah’s push for ICJ advisory opinion on Israeli ‘occupation’
Netanyahu held his government's first full work meeting on Tuesday morning and approved Avi Maoz's appointment as deputy minister.