Istanbul ( CNN ) -- Turkey 's fiery prime minister ratcheted up rapidly-escalating tensions with Israel on Tuesday , comparing Ankara 's once-close ally in the Middle East to a `` spoiled boy '' and announcing additional sanctions would soon be imposed . `` We are completely suspending all of these , trade relations , military relations , related with the defense industry , '' Recep Tayyip Erdogan said , according to the semi-official Anatolian Agency . `` All of these are completely suspended and other measures will follow this process . '' Asked to clarify whether this meant Turkey will halt more than $ 3 billion in bilateral trade , an official in the Turkish prime ministry , speaking on condition of anonymity under government protocol , insisted Erdogan was not referring to trade relations . `` He was referring to the defense industry , '' the official said . `` Nothing more than the measures that have been announced so far . '' Last week , Turkey declared it was downgrading relations with Israel , suspending all military agreements between the two countries and giving senior Israeli diplomats less than a week to leave Turkish territory . `` If the current steps are regarded as 'plan B , ' there will be a 'plan C , ' '' Erdogan said on Tuesday in his first public comments on the matter since Ankara imposed sanctions on Israel . Erdogan 's government is incensed that Israel refuses to apologize or pay compensation for eight slain Turks and one Turkish-American . The humanitarian workers and activists were shot dead by Israeli commandos in a botched 2010 raid on an aid convoy that was trying to bust Israel 's sea blockade of Gaza . But `` Israel does not want to see a further deterioration in the relationship with Turkey , '' said a senior Israeli government official , who asked not to be identified because of the sensitivity of the issue . `` There have been a number of proposals on the table to prevent a deterioration and unfortunately they have not been successful , but from our point of view a deterioration in the relationship serves neither side 's interests . '' Multiple Israeli sources said they are doing what they can to be responsible and reverse the negative dynamic . Some Israeli officials believe the current troubles between the two countries are minor bumps that can be smoothed out with time and the proper diplomacy . Others believe the deteriorating relationship has little to do with Israel and more to do with a reorientation of Turkish foreign policy towards the Muslim world . A possible Erdogan trip to Gaza is contributing to that school of thought . Diplomats in Cairo and Ankara tell CNN that Erdogan is tentatively scheduled to visit Cairo next week . There is growing speculation in local media that the Turkish prime minister may try to visit Gaza via Egypt 's Rafah border crossing . `` This is a process that will continue until the last moment , '' Erdogan said Tuesday , according to Anatolian , when asked about a trip to Gaza . `` We will make the final decision there , talking to our Egyptian friends and brothers . According to that , there may be a trip to Gaza . '' Despite deteriorating political relations between Jerusalem and Ankara , trade has grown substantially between the two countries over the last year , according to Turkish government statistics . On Monday , Stanley Fischer , governor of the Bank of Israel , gave a speech in which he highlighted the importance of Israel 's economic ties with Turkey . He noted that Turkey 's economy was the largest in the region , with a gross domestic product in excess of $ 700 billion , and that Turkey is becoming a key player in regional trade . Turkey is a significant Israeli trading partner , Fischer said , and damage to the trade relationship between the two countries could have serious consequences for Israel . Yigal Schleifer , Washington-based editor at Eurasianet and expert on Turkish-Israeli relations , argues the Middle Eastern `` outsider '' status that once drew Turkey and Israel together into an alliance during the 1990s has changed , as Turkey has grown economically and established closer political ties with Arab neighbors . `` The paths have diverged , '' Schleifer said . `` What you have left is two countries with different visions currently for their position in the region . So Turkey wants to build a more unified region with more open borders that ultimately helps trade and ultimately helps Turkey see itself as a regional leader . Israel sees itself as isolated in the region , increasingly threatened and increasingly concerned with security issues . '' Prior to the report about Erdogan 's comments Tuesday , Amos Gilad , a senior Israeli defense official , told Israeli radio that despite the reports , Turkey is not disengaging from Israel . Contrary to what is being reported , he said , the Israeli military attache to Turkey is continuing his work there . CNN 's Watson and Comert reported from Istanbul ; Flower reported from Jerusalem . Journalist Mohamed Fadel Fahmy in Cairo contributed to this report .
tensions between the two countries are rising . An official says that relations will not be improved . The tension stems from a 2010 attack on a Gaza aid convoy . Israel says it does not want a further deterioration of relations with Gaza .