New Zealand prime minister says Israel's Netanyahu has 'lost the plot'

New Zealand’s Prime Minister Christopher Luxon said on Wednesday that Israel’s leader Benjamin Netanyahu had “lost the plot” as the country weighs up whether to recognise a Palestinian state.

Luxon told reporters that the lack of humanitarian assistance, the forceful displacement of people and the annexation of Gaza were utterly appalling and that Netanyahu had gone way too far.

"I think he has lost the plot," added Luxon, who heads the centre-right coalition government. "What we are seeing overnight, the attack on Gaza City, is utterly, utterly unacceptable."

Luxon said earlier this week New Zealand was considering whether to recognise a Palestinian state. Close ally Australia on Monday joined Canada, the UK and France in announcing it would do so at a UN conference in September.

The humanitarian crisis in Gaza has reached "unimaginable levels", Britain, Canada, Australia and several of their European allies said on Tuesday, calling on Israel to allow unrestricted aid into the war-torn Palestinian enclave.

Israel has denied responsibility for hunger spreading in Gaza, accusing Hamas of stealing aid shipments, which Hamas denies.

Ahead of Wednesday’s parliamentary session, a small number of protesters gathered outside the country’s parliament buildings, beating pots and pans.