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The Trump administration has been pushing for a breakthrough between the two neighbors that have been officially in a state of war since Israel was created in 1948.
Rights groups criticized the bill, saying it makes the death penalty too easy to impose while doing away with procedures safeguarding the right to a fair trial.
Israel’s military said the soldier posing with a statue of the Virgin Mary would get 21 days in military prison and the soldier who took the photograph would get 14.
Spanish-Swedish citizen Saif Abukeshek and Brazilian citizen Thiago Ávila were among dozens the Israeli navy intercepted in international waters hundreds of miles from Israel.
