Israel has denied creating famine and accused Hamas of "engineering" food shortages.
Israel and the US have recalled negotiators from ceasefire talks after Hamas responded to the latest proposal.
Israeli Prime Minister Benjamin Netanyahu said Israel and the US are now considering "alternative options" to return hostages and destroy Hamas as a negotiation faltered.
The UN has warned that starving Gazans are beginning to resemble walking corpses while Palestinian health officials said dozens of people recently died of starvation and malnutrition as hunger stalks the territory.
Israel has denied creating famine and accused Hamas of "engineering" food shortages.
An Israeli security official said the country will allow foreign nations to airdrop aid into Gaza in the coming days.
Meanwhile, France says it will recognise a Palestinian state in September - a move, Netanyahu said would reward terror.
UK Prime Minister Keir Starmer said he would hold an emergency call on Friday with France and Germany as the crisis in Gaza has reached new depths.
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