Trump admin lifted sanctions on Israeli accused of killing Palestinian activist

Yinon Levi is accused of killing Palestinian who worked on Oscar-winning film.

An Israeli settler who Israeli officials say is suspected of shooting and killing a Palestinian activist tied to the Oscar-winning film "No Other Land" had been sanctioned by the Biden administration for alleged violence against Palestinians -- sanctions lifted by the Trump administration.

Yinon Levi, the alleged shooter according to Israeli officials, faced financial sanctions imposed last year under then-President Joe Biden after being cited for allegedly inciting violence against Palestinian civilians and burning farmland.

Speaking to ABC News Chief International Correspondent James Longman last year following Biden's sanctions, Levi and his wife, Sapir, denied the accusations cited in the sanctions and said they initially thought the sanctions were a "joke."

"We are here and we have to defend ourselves and nothing more," Sapir Levi told Longman.

Shortly after taking office in January, President Donald Trump signed an executive order lifting the sanctions and removing Levi's name, among others, from the U.S. "Specially Designated Nationals and Blocked Persons List."

Levi's name appears at the very top of the list of those who had sanctions lifted, released by the Treasury Department in January.

Local officials confirmed that 31-year-old Awdah Hathaleen was shot dead in the West Bank village of Umm al-Khair on Monday.

The father of three was an activist who worked on the film, "No Other Land," which tells the story of a West Bank community through the lens of a Palestinian activist. The movie won an Oscar in March for best documentary feature film.

According to the Palestinian Education Ministry, Hathaleen was also a teacher who taught at the Al-Saray'a Secondary School.

In a video posted on X, the director of "No Other Land," Yuval Abraham, called Hathaleen a "friend" and said he was "shot in the upper body."

According to Israel police, "Palestinians threw stones at civilian vehicles that were lawfully conducting work in the area" and a firearm was discharged. A total of five Palestinians and two foreigners were detained by Israel Defense Forces "on suspicion of involvement," police said.

Initially unnamed, the suspect was questioned for "reckless conduct resulting in death and unlawful use of a firearm," Israel police said in a statement. They added that that a court had ordered the person to be released to house arrest until Friday, denying a police request to extend his detention.

ABC News has confirmed that Levi was taken into custody following Monday's incident, per Israeli officials. It is unclear if Levi has been charged and if he has publicly commented.

During a press briefing Tuesday, State Department spokesperson Tammy Bruce deflected questions about the allegations against Levi and lifting the sanctions, instead deferring to the Israeli government to investigate.

"We decry the loss of life everywhere -- that has been the hallmark of the work that this administration is doing," she said. "We don't comment on investigations that belong to another government."

In a statement Tuesday, Rep. John Garamendi, a California Democrat, slammed Israeli settler violence in the West Bank and demanded answers about Hathaleen's death.

"Lifting sanctions on the very individuals who perpetrate these unacceptable acts only emboldens violent settlers and sends a signal that the United States won't hold violent actors accountable," Garamendi said.

ABC News' James Longman, Will Gretsky and Tom Soufi Burridge contributed to this report.