June 30 (Bloomberg) -- Spain’s National Court dropped an investigation into whether Israeli forces committed a war crime in the Gaza Strip by bombing an apartment building housing a Hamas leader.

Magistrate Fernando Andreu had been investigating the 2002 attack in Gaza City that killed Hamas commander Salah Shehadeh and 14 other people. Today’s ruling by a panel of judges to end the investigation without charging anyone can be appealed to the Supreme Court, according to a statement from the National Court. No reason for the decision was given in the statement.

The case had prompted criticism in Israel, where the Justice Ministry said it was a “cynical attempt to exploit the Spanish judicial system for political purposes.” Then-Foreign Minister Tzipi Livni called her Spanish counterpart in January to discuss the matter, a Spanish Foreign Ministry official said last month.

Israeli Foreign Minister Avigdor Lieberman welcomed the decision, saying the case was politically motivated. “We hope this closes the issue,” he said in an e-mailed statement.

Spain is moving to change legislation that allows judges to put foreign officials on trial for alleged crimes involving the concept of universal justice, after the cases provoked diplomatic disagreements. The crimes include genocide, crimes against humanity, war crimes, terrorism and piracy.

Spain’s lower house of parliament approved a bill June 25 that will limit judges’ power to investigate such crimes. They will only be able to pursue cases if the suspects are in Spain or the victims Spanish, and when no other investigation is being carried out, according to the measure, which will go to the Senate for approval.

To contact the reporter on this story: Emma Ross-Thomas in Madrid at erossthomas@bloomberg.net.

Last Updated: June 30, 2009 09:46 EDT