Turkey has previously warned Israel of "serious consequences" if it tries to hunt down members of Hamas living outside Palestinian territories, including in Turkey.
"I would call upon all Jews, in Israel and around the world, to completely refrain from purchase of Turkish produce," Rabbi David Stav said.
Sanctions include the removal of Israel from Turkey's list of export destinations.
Israel can no longer remain silent in the face of Turkey’s extensive support of Hamas and its central role in building the organization’s financial empire.
By October 25, Erdogan was praising Hamas as “liberators” and condemning what he described as “the Israeli regime’s unlawful and unrestrained attacks against civilians.”
Turkish forces regularly carry out strikes in neighboring Iraq as part of the country's offensive against PKK militants.
Netanyahu responded to Erdogan, saying the Turkish leader is "carrying out a genocide of Kurds and holds a world record in imprisoning journalists who oppose him."
Hasan Bitmez, 54, a member of parliament from the opposition Felicity (Saadet) Party, died in Ankara City Hospital, Health Minister Fahrettin Koca told reporters in televised remarks.
"Israel is not only a murderer but also a thief," Erdogan said, according to Turkish state media, adding "We cannot let Israel occupy Gaza once again."
Erdogan also said that he is not losing hope for a lasting peace in the conflict adding that Hamas cannot be excluded from its potential solution.