EU foreign ministers met on Monday to consider actions intended to limit Israel's military activity in Gaza and to persuade Hamas to give up its armed wing.

The Gaza health ministry, which operates under Hamas authority, said at least 1,045 civilians have died since the cease‑fire signed in October 2025. The United Nations judged the ministry's casualty figure to be reliable.

Israeli attacks on 29 June in Deir al‑Balah and Khan Younis resulted in five deaths.

Humanitarian corridors in Gaza remain limited and media access is constrained. Aid agencies describe living conditions in displaced‑person camps as disastrous.

Hamas steps back from administration

On 6 July Hamas announced it would relinquish its administrative role in Gaza, aiming to activate the technocratic National Committee for the Administration of Gaza (NCAG). The NCAG is led by civil engineer Ali Shaath, a former official of the Palestinian Authority, and has been formed but is currently operating from Cairo.

Israel has refused to allow the NCAG to enter the Gaza Strip, arguing the body would lack authority without Hamas's security forces. Hamas says its staff will stay in Gaza to continue providing services under the NCAG, a demand Israel rejects. Israel's position is that Hamas must be completely disarmed before any agreement, while Hamas says it is not ready to accept total disarmament at this time.

EU response and possible sanctions

A European Commission foreign affairs spokesperson repeated on the previous Friday that both sides must fully apply the peace plan, which calls for Hamas disarmament and a full Israeli withdrawal from Gaza. The Commission is organising a second donor conference for Palestine to coordinate humanitarian aid and support for the Palestinian Authority.

During the EU ministers' meeting, officials discussed possible new sanctions against Israel. One proposed sanction is a ban on products originating from Israeli settlements in the occupied West Bank. The Commission has outlined several restriction options, with a final decision awaiting member‑state positions. Proposed trade restrictions are intended to signal EU disapproval of settlement expansion and to pressure Israel militarily.

Critics warn that such sanctions could further harm ordinary Israelis and Palestinians. Supporters argue that the current situation already causes severe hardship for Gaza civilians.

Reconstruction funding and humanitarian access

The EU is also expected to consider increasing reconstruction funding and expanding humanitarian corridors. The next donor meeting will seek commitments that match the scale of destruction reported by UN agencies, which say large parts of Gaza's infrastructure are unusable. The EU has pledged €1.5 billion for Gaza reconstruction, but delivery is slowed by security issues and the absence of a clear governance structure on the ground.

Trade union and parliamentary views

UnionPress interviewed representatives of the European Trade Union Confederation, who say any sanctions should include strong protections for workers in Israel and the occupied territories. They caution that a blanket ban could raise living costs for Israelis and would not address the underlying power imbalance.

The European Parliament's Committee on Foreign Affairs has called for a transparent monitoring system to ensure consistent application of any trade restrictions. MEPs from the Progressive Alliance state that EU credibility on human rights depends on concrete actions rather than statements.

Analysts' assessment

Analysts say the EU's ability to influence the conflict relies on its collective economic power and its role as a mediator. Discussions about banning settlement products could set a precedent for how Europe reacts to violations of international law and may affect trade relations with Israel and neighbouring countries.