Chavez, a longtime critic of Israel, called the country's offensive in Gaza a "holocaust" in televised comments on Tuesday.
After Chavez announced the expulsion of Shlomo Cohen, the Israeli ambassador, Venezuelan flags and posters of Chavez have appeared at protests in Beirut and the West Bank.
At least 763 Palestinians have been killed since Israel began its assault on December 27.
More than 3,121 people have also been wounded. Eight Israeli soldiers and three civilians have died in the same period.
The United Nations aid agency UNRWA also suspended its operations in the Gaza Strip on Thursday.
The move came after Israeli tanks shelled a UN convoy earlier in the day, killing a Palestinian UN worker and injuring two others, as lorries were travelling to the Erez crossing to pick up humanitarian supplies meant to have been allowed in during a three-hour suspension of fire.