JERUSALEM, Israel -- Turkish Prime Minister Recep Tayyip Erdogan suspended all trade and military cooperation with Israel on Monday, the latest development in the worst diplomatic crisis between the two former allies in decades.

Over the weekend, Turkey ordered all senior Israeli diplomats to leave the country by Wednesday.

Turkish Foreign Minister Ahmet Davutoglu announced his country would increase its naval presence in the Mediterranean.

Turkey's decision follows release of a U.N. report last week. It investigated an incident in May 2010 when Israeli commandos boarded a Turkish ship trying to break Israel's naval blockade of the Gaza Strip.

Israel set up the blockade to prevent Hamas from smuggling weapons.

The U.N. report ruled Israel's naval blockade of Gaza was legal. It also said the Israeli commandos faced "organized and violent resistance" and used force in self-defense, but said they used "excessive" force since nine pro-Palestinian activists died in the skirmish.

Israeli officials disagreed with the U.N. report about the use of excessive force but were satisfied with most of the U.N. findings. They were disappointed with the reaction of the Turkish government.

"What is disappointing is that a report, which to my understanding, was initiated at the request of the Turks -- with the participation of the Turks -- is now not being adopted by them," Foreign Ministry spokesman Paul Hirschson told CBN News.

Instead, Turkey wants an apology and compensation for those killed or injured in the incident. Israeli Prime Minister Benjamin Netanyahu said he expressed regret over the loss of life but that Israel will not apologize.

Turkey also threatened to take the case of Israel's naval blockade to the international criminal court.

Some analysts interpret the reaction by the Turkish government of Prime Minister Erdogan as another sign Turkey is becoming more Islamist by strengthening its ties with Islamic groups like Hamas, while demonizing the Jewish state.