Israeli leaders on Sunday harshly criticized an expected decision by the U.S. to impose sanctions on a unit of ultra-Orthodox soldiers in the Israeli military. The decision, expected as soon as Monday, would mark the first time the U.S. has ever imposed sanctions on a unit inside the Israeli military and further strains relations between the two allies, which have grown increasingly tense during Israel’s war in Gaza. While U.S. officials declined to identify the sanctioned unit, Israeli leaders and local media identified it as Netzah Yehuda — an infantry battalion founded roughly a quarter of a century ago to...