I mean, they can figure this out on their own but in the meanwhile we don’t have to trade with them and give them money to essentially violate our ethics at arms length distance.
As for Israel, I am sympathetic to a small, democratic nation populated by the descendants of a western genocide, which is surrounded by hostile autocratic or theocratic neighbors. However that’s my opinion. If Israel’s existence is somehow against your ethics, I won’t force you to trade with them. I would just criticize you more directly.