Turkey suspended all trade with Israel on Thursday, citing the "worsening humanitarian tragedy" in Gaza as its motive.
Business deals between Turkey and Israel were worth almost $7 billion last year (€6.5 billion).
"Export and import transactions related to Israel have been stopped, covering all products," the ministry said in a statement.
"Turkey will strictly and decisively implement these new measures until the Israeli Government allows an uninterrupted and sufficient flow of humanitarian aid to Gaza."
Earlier on Thursday, Israel's Foreign Minister had accused Turkish President Recep Tayyip Erdogan of acting like a "dictator" when reports of blockades first emerged.
On X, Israel Katz said that Erdogan was "disregarding the interests of the Turkish people and businessmen and ignoring international trade agreements".
Katz added that he had instructed officials to "immediately engage with all relevant parties in the government to create alternatives for trade with Turkey, focusing on local production and imports from other countries."
The move to halt all trade follows partial blockades.
Last month, Turkey announced that it was restricting exports of 54 types of products to Israel, including aluminium, steel, construction products and chemical fertilisers. Israel responded by announcing its own trade barriers.
Turkey was the first Muslim-majority nation to recognise Israel in 1949, although the relationship between the two countries has been strained in recent years over Israel’s killing of Palestinians.
President Erdogan has notably been a vocal critic of the military offensive in Gaza, launched after Hamas' attack on Israel last year.
Erdogan has described Hamas, considered a terrorist organisation by Israel, the United States and the European Union, as freedom fighters.
He has also accused Israel of carrying out war crimes and genocide in Gaza.
Given this rhetoric, Erdogan has come under domestic pressure to halt trade with Israel and act in line with his words.
Turkish officials have said they will coordinate with the Palestinian authorities to ensure that Palestinians are not affected by the trade suspension.
