ANKARA, Shawwal 4, 1432, Sep 2, 2011, SPA -- Turkey expelled Israel's envoy and froze military cooperation with the Jewish state on Friday after a U.N. report on the deaths of nine Turks in an Israeli raid on a Gaza-bound ship failed to trigger an apology, Reuters reported. Foreign Minister Ahmet Davutoglu told reporters all diplomatic staff above the level of second secretary would be sent home by Wednesday and Turkey would freeze military pacts with its erstwhile ally. "All military agreements have been suspended," he said. Ankara also said it would seek to prosecute all Israelis involved in the May 2010 raid. "Turkey will take legal actions against the Israeli soldiers and all other officials responsible for the crimes committed and pursue the matter resolutely," Turkey's embassy in Washington said in a statement. The rift between Turkey and Israel comes despite U.S. efforts to encourage a rapprochement between two regional powers whose cooperation it needs to address changes sweeping the Middle East. Both countries share a border with Syria. Turkey was stung by Israel's refusal to make a formal apology and pay compensation to families of the dead after the U.N. report said on Thursday that Israel had used unreasonable force in its raid on the Gaza-bound ship. Israel's ambassador Gabby Levy is currently in his home country and canceled plans to return to Turkey. Israel said on Friday it accepted the findings of the U.N. report and hoped to mend ties with Turkey, but reiterated that it would not apologize for the deaths. Immediately after the attack on the aid convoy, Turkey withdrew its ambassador to Israel, suspended joint military exercises, and barred Israeli military aircraft from Turkish air space. Turkey's reaction to the report, which also declared that Israel's naval blockade of the Gaza Strip was legal, deepened a rift that broke wide open in 2009 after Prime Minister Tayyip Erdogan lambasted then-Israeli president Shimon Peres in Davos over an Israeli offensive in Gaza. Faced with the changes wrought by the Arab Spring, both Turkey and Israel are trying to adjust to the shifting political landscape. Erdogan's stand on the Palestinian issue has held Turkey in good stead among Arabs agitating for greater democracy, notably in Egypt and more recently Syria. "The Israeli government, which should analyze best what is happening in the Middle East, is completely lacking in strategy," President Abdullah Gul told reporters. "Turkey is seeking peace and stability. There are steps which Israel must take in the region to achieve peace and stability." But Turkey has carefully avoided a complete breakdown in relations with Israel, stepping up diplomatic pressure in a calibrated fashion to leave open chances for a change of heart either by Israel's current coalition or a future government. Israel responded with a statement on Friday saying it would work to resolve the dispute. It reiterated regret over the loss of life but made clear that no apology would be forthcoming. -- SPA 21:25 LOCAL TIME 18:25 GMT www.spa.gov.sa/921969