[BUG] WebFetch tool hangs when site not accessible

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

When calling WebFetch tool, Claude Code gets stuck and must be canceled. This error occurs in both Claude Code as well as Claude Agents SDK with python. This causes the entire agent chain to hang.

For example:
Fetch(https://www.abnamro.com/en/news/abn-amro-invests-in-all-fem
ale-founded-climate-tech-fund-blume-equity)
⎿  Error: canceled

What Should Happen?

Attempt to retrieve the content, or gracefully timeout so the agent flow can continue.

Error Messages/Logs

Steps to Reproduce

Fetch(https://www.abnamro.com/en/news/abn-amro-invests-in-all-fem
ale-founded-climate-tech-fund-blume-equity)
⎿  Error: canceled

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.8

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_