It starts with the leaders in both Gaza and Israel affirming the 1967 borders as the permanent borders.
Hamas offered to do it years ago. It will be necessary for them to publicly affirm it again. Israel never has, IMO because the most militant factions in Israeli society want to seize all of Eretz Israel, even the parts that are now the Kingdom of Jordan. It will be a helluva fight in the Knesset to get them to agree that Gaza isn't part of Israel, and will only ever become part of Israel if the Gazans are willing.
Repeat this ad nauseum won't make it true.
And the Israeli radicals only have power because "peace" has been repeatedly shown to make things worse. They have been repeatedly rewarded (fewer attacks) by aggressive actions, repeatedly punished (more attacks) by peaceful actions.
As it stands Israel has no reason to spend much political capital on opposing it's radicals because they aren't actually interfering with peace. Reigning them in would raise the chance of peace from 0% to 0%.
I think Israel should demand that while Hamas can be present at any negotiations, the PA act as principal negotiator and spokesperson for the Palestinian people as a whole. It is much better for Israel to be dealing with one of the authors of the Oslo Accords rather than one of the authors of the October massacre.
No peace that Iran doesn't agree to is worth the paper it's printed on.
Also, Gaza needs a way to export its products, import goods, sell its natural gas, and fish in Gazan territorial waters without Israeli interference. Israel's chokehold on the Gazan economy and its frequent withholding of donated food and humanitarian aid does more to inflame the situation that anything else. Perhaps Egypt or Saudi Arabia would be willing to be the principal import/export destination, so that what comes in and out of Gaza can be inspected.
Falling for Hamas propaganda doesn't help things.
Gaza can freely import anything that has no military use. Dual-use things used to be permitted under a system of tracking them to their end use, but since the diversion is
at least 10% that tracking system is obviously inadequate. Gaza, likewise, can freely export anything.
Note that the crossing points periodically come under Hamas fire and when the people take cover crossing obviously stops. Blame Hamas for that, not Israel.
And frequent withholding of aid?? No, there is a requirement to inspect
anything coming in because all too often it's contraband, not aid. There is a limit to the capacity of the inspections but normally they do not saturate. Or are you thinking of that stupid ship that had a bunch of trash in the hold (things that could reasonably be called "aid" but simply thrown in a heap--they would not have been in useable shape after that) and a group of people that had made martyrdom videos? Yet another case of sacrificing people to make the world think Israel was bad.
And there's no way Israel is going to permit outsourcing of the inspections.
If you want peace you have to be willing to allow the Gazans to succeed in building up their economy and improving their living situation. You have to keep the lid off the pressure cooker, not put it back in place and turn up the heat.
The lid is called Hamas.
They already controlled the majority of the economic activity in Gaza. If they remain in power they will have an even higher percent as a result of this because their economic source is external whereas the rest of it was internal.