Progress towards "building a prosperous and stable future Palestinian state" will not happen unless there is a lasting ceasefire, a No 10 spokesperson said.
A group of MPs has called on the Prime Minister to do more to persuade Israel to lift restrictions on the movements of Palestinians and to improve the supply of water and electricity.
"We welcome the International Development Committee's strong support for our work on economic development in the Occupied Palestinian Territories and agree that sustainable development can only happen if economic restrictions are eased," a Government spokesman said.
"We will continue our work to help strengthen Palestinian institutions and build a prosperous and stable future Palestinian state. We are also committed to lasting change in Gaza, though we recognise that reconstruction and growth cannot happen until we have a durable ceasefire."
More top news
Aidan McAteer, 23, pleaded guilty via video link as Violet-Grace's mother wept in the public gallery.
The wife of a man who filmed himself killing their baby in Facebook videos, said she is not angry at the site or those who shared the posts.
Moyes told the BBC reporter she "might get a slap" following a post-match interview when Sunderland drew 0-0 with Burnley.