Germany is reviewing its hundreds of millions of euros of humanitarian aid to the Palestinian territories, Development Minister Svenja Schulze said Sunday. 

She said although Germany had been careful to check that the donor money was only used for peaceful ends, the nature of the current attack by the Palestinian Islamist group Hamas marked a "terrible turning point." 

"We will now review our entire engagement for the Palestinian territories," Schulze said.

Germany would discuss with Israel how development projects in the region could best be served, but she added it was also in the country's interest for people in the Palestinian territories to be able to live in stability in the long term.  

German development commitments currently total €250 million (around $265 million) and include funds for water supply and sanitation, health care, food security and job creation.

Half of that for bilateral projects via Germany's overseas aid agency and development bank, and the other half for the UN agency for the Palestinians, UNRWA.

Meanwhile, German Chancellor Olaf Scholz spoke with Israeli Prime Minister Benjamin Netanyahu and assured him of German support.

Scholz said Israel had the right to defend itself after the "barbaric attacks."

The German leader also planned to speak with Egyptian President Abdel Fattah el-Sissi, supporting Egypt's efforts to mediate and de-escalate the situation. 

As a precaution, authorities have increased the protection of Israeli and Jewish institutions in Germany.