Israeli navy commandos boarded a pro-Palestinian international aid flotilla on May 31 and clashed with activists on one of the ships, a raid ended with at least nine activists from the flotilla killed and dozens injured. There has been great pressure from the international community on Israel to accept an international inquiry into the events.

The panel is "to provide a credible and independent response for questions raised by countries in the international community regarding the naval event and its compliance with international law norms," Israeli Premier Benjamin Netanyahu said in the statement.

Regarding the call from the international community to lift the siege on Gaza, Netanyahu noted earlier in the day that Israel will not allow free inflow into Gaza.

"The principle guiding our policy is clear -- to prevent the entry of war materiel from entering Gaza and to allow the entry of humanitarian aid and non-contraband goods into the Gaza Strip," the premier said at the weekly cabinet meeting on Sunday morning.

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