The franchise had included in the condemned Facebook post a screenshot taken from a footage released by the Israeli prison, claiming that the leader of the strike Marwan Barghouthi was eating secretly in the cell.
Hundreds of Palestinian prisoners in Israeli jails are now on hunger strike over their conditions.
Barghouti's family quickly countered the insinuation that the leader had broken his fast by pointing out the age of the image, and observing that the extreme right-wing Likud Party government of Prime Minister Benjamin Netanyahu was sinking to new lows in its attempts to discredit an ongoing and widespread hunger strike by Palestinian political prisoners within the Israeli prison system.
Prison guards reportedly placed the candies in Barghouti's cell, and Israeli officials such as Public Security Minister Gilad Erdan are enthusiastically using the incident to discredit the Palestinian leader.
Hundreds of Sudanese citizens on Tuesday protested in front of the United Nations (UN) Head-Office in Khartoum in solidarity with Palestinian prisoners in the Israeli jails. He said that "the prisoners will not buy this account from the Israeli side, and they will continue their strike".
For Israelis, he is a murderer and a terrorist who is serving five life sentences for his role in suicide bombings and attacks against Israelis that killed five people during the Second Intifada, or uprising, that began in 2000.
His wife, Fadwa Barghouti, said the footage was "fake" and "intended to break the morale of prisoners" after more than 1,000 Palestinians in Israeli jails joined Barghouti in refusing food on April 17. A spokeswoman for Pizza Hut International apologised for the post.
Oil prices rise on expectation of output cut extension
The fall in oil prices was, however, given some support by a report indicating that there was a decline in output in Saudi Arabia. Since a low point in May 2016, US producers have added 387 oil rigs, or about 123 per cent, Goldman Sachs said.
The post was taken down from their Hebrew Facebook page.
The post sparked fury on Palestinian social media, including calls to boycott the chain.
In a public apology posted to its global Facebook page, Pizza Hut apologised for the "completely inappropriate" advertisement and said that it "does not reflect the values of our brand".
"It was completely inappropriate and does not reflect the values of our brand", she told AFP. "Marwan will lead the strike until it accomplishes its goals".
"The local franchisee in the country removed it", she added.
"Pizza Hut is ridiculing the prisoners' strike", activist Alaa Abu Diab wrote on Facebook, using the hashtag #boycott_pizzahut.