US President Joe Biden issued an executive order on Thursday targeting Israeli settlers in the West Bank accused of attacking Palestinians and Israeli peace activists.

The order imposed financial sanctions and visa bans on four individuals in an initial round of measures, reports international media.

Biden's order represents a rare and significant measure taken against America's closest ally in the Middle East.

Despite acknowledging Israel's right to defend itself, the executive order addresses concerns related to actions taken by Israeli settlers in the West Bank against Palestinians and Israeli peace activists.

Those settlers were involved in acts of violence, as well as threats and attempts to destroy or seize Palestinian property, according to the order, reports AP.

Biden has urged Israeli Prime Minister Benjamin Netanyahu's government to exercise more restraint in its military operations targeting Hamas.

Netanyahu denounced the US penalties, which his government was notified in advance, according to US officials.

Palestinian authorities report casualties among Palestinians, while rights groups document instances of settlers torching cars and attacking several small Bedouin communities, leading to forced evacuations.