Prime Minister Anthony Albanese says the situation in Gaza has gone beyond the world’s worst fears as hopes of a truce between Israel and Hamas have been dashed.

The United Kingdom, Germany and France are calling for an "immediate ceasefire" in Gaza and "unconditional release of all hostages," after the three countries held an emergency call to discuss the ongoing war and humanitarian crisis.

Thailand's foreign ministry said on Friday it agrees in principle with a Malaysian proposal for a ceasefire between Thai and Cambodian forces and will consider the plan, but that it must be based on "appropriate on-the-ground conditions".

Thousands of demonstrators packed Tel Aviv's Habima Square on Thursday, calling on the Israeli government to agree a deal to end the war in Gaza and bring all the hostages still held by Hamas home. Footage shows huge crowds, with some people holding signs aloft to show their objection to the ongoing conflict.