Protestors hold up portraits during a rally near the residence of the Israeli prime minister in Jerusalem. AFP

Dozens of family members of hostages held by Hamas stormed a committee meeting in Israel’s parliament Monday, demanding a deal to win their loved ones’ release, as European foreign ministers joined growing international calls for Israel to negotiate on the creation of a Palestinian state after the war.

The developments showed the increasing pressure on Israeli Prime Minister Benjamin Netanyahu, who has dug in on both fronts. He has insisted to the Israeli public that pursuing the devastating offensive in Gaza is the only way to bring the hostages home. At the same time, he has rejected the United States’ vision for a postwar resolution, saying he will never allow a Palestinian state.

The dispute over Gaza’s future pits Israel against its top ally and much of the international community. It also poses a major obstacle to plans for postwar governance or reconstruction of the coastal territory, large parts of which have been left unlivable by Israeli bombardment.

As fears grow that Israel’s war in Gaza will spark a wider regional conflict, the US and British militaries bombed eight locations in Yemen used by the Houthi rebels. It's the eighth time the U.S. has bombed Houthi sites since Jan. 12, US officials said late Monday, speaking on condition of anonymity to discuss a military operation. The Iranian-backed Houthis have attacked shipping in the region’s waterways, saying they aim to end the Israeli offensive in the Gaza Strip.

In southern Gaza, Israeli strikes and shelling intensified in and around the city of Khan Younis, sending Palestinian families fleeing south in pickup trucks and donkey carts loaded with possessions.

In the city, which has been a battle zone for weeks, people dug graves for the dead inside the yard of Al-Nasser Hospital as staff struggled to deal with dozens of newly killed and wounded, including children. Health care workers said strikes hit at least four schools sheltering displaced people on the city's western edges, including two inside a coastal strip that Israel had declared a safe zone for people fleeing.

A demonstrator holds up their hands painted in red during a protest in Jerusalem on Monday. Reuters

Gaza's internet and phone networks collapsed again Monday for the 10th time during the war. The repeated blackouts severely hamper distribution of aid that's essential for the survival of the territory's population of 2.3 million, UN officials said. The loss of service also prevents Palestinians from communicating with each other and the outside world.

Netanyahu has vowed to continue the offensive until "complete victory” over Hamas and to return all remaining hostages after the Oct. 7 rampage in southern Israel that triggered the war. In that attack, some 1,200 people were killed and Hamas and other militants abducted around 250 people.

Israelis are increasingly divided on the question of whether it’s possible to do either.

Around 100 hostages were freed under a weeklong cease-fire deal in November in exchange for the release of Palestinians imprisoned by Israel. Around 130 remain captive, but a number have since been confirmed dead. Hamas has said it will free more captives only in exchange for an end to the war and the release of thousands of Palestinian prisoners.

Netanyahu has ruled out such an agreement, but anger is rising among hostages’ families. Relatives and other protesters set up a tent camp outside Netanyahu’s residence in Jerusalem, vowing to remain until a deal is reached.

On Monday, dozens of family members of the hostages stormed into a gathering of the Knesset’s finance committee, holding up signs and yelling, "You won’t sit here while they are dying there!”

"These are our children!” they shouted. Some had to be physically restrained, and at least one person was escorted out.

Security officers look at red paint by protestors to symbolise the blood of the Israeli hostages in Jerusalem. AFP

Israel’s offensive has killed at least 25,295 Palestinians in Gaza and wounded more than 60,000, according to the Gaza Health Ministry. The ministry does not distinguish between civilians and combatants but says around two-thirds of those killed were women and children.

Residents in Khan Younis reported bombardment on all sides of the city. At Nasser Hospital, Ayman Abu Abaid, the head of surgery, told Al Jazeera TV early Monday that at least 50 dead and more than 100 wounded had been brought to the facility.

Ashraf Al-Qudra, spokesman for the Health Ministry, said Israeli troops had stormed Al-Khair Hospital and detained the medical staff, the latest hospital that troops have seized during the conflict. The hospital is just inside the safe zone at Muwasi, a rural coastal strip west of Khan Younis, where the Israeli military had said it would not carry out operations.