By Andrew Gray and Bart H. Meijer

BRUSSELS, July 13 (Reuters) - A ban on trade with Israeli settlements in the occupied West Bank received the strongest backing among European Union foreign ministers on Monday, EU foreign policy chief Kaja Kallas said, although the bloc remained divided over possible curbs on such commerce.

European governments have increased pressure for EU action in recent months, citing violence by Israeli settlers against Palestinians and frustration with Prime Minister ​Benjamin Netanyahu’s government, which has expanded settlements.

LONDON, July 13 (Reuters) - The U.N.'s shipping agency said on Monday that it opposes fees on ships passing through maritime waterways but would await more details after U.S. President Donald Trump said he would reinstate a naval blockade on Iran and charge 20% on all cargo shipped through the Strait of Hormuz.

Trump said in a Truth Social post the process would begin immediately, but did not elaborate.

"We are aware of the post and awaiting more details," a spokesperson with the U.N.'s International Maritime Organization said.

By Nate Raymond

BOSTON, July 13 (Reuters) - An Iranian-born engineer was convicted on Monday of U.S. charges that he conspired to illegally export technology with potential application in military drones to a company in Iran whose customers included the country's Islamic Revolutionary Guard Corps.

July 13 (Reuters) - Renewed U.S.-Iranian hostilities are eroding an interim agreement signed in June, reflecting disagreements over the Strait of Hormuz and other issues and underlining difficulties facing efforts to secure lasting peace.

The 14-point Islamabad Memorandum of Understanding(MoU) declared an end to the war and the Strait of Hormuz open for commercial vessels. But its wording was vague on key points, analysts say, while leaving tough issues - notably the fate of Iran's nuclear programme -to a second phase of negotiations.

By William James

LONDON, July 13 (Reuters) - Britain banned support for Iran's Islamic Revolutionary Guard Corps and a linked group on Monday following a series of antisemitic attacks, using new powers designed to stop the use of state-sponsored proxies.

The government and intelligence agencies have become increasingly concerned about foreign powers paying organised crime groups or low-level criminals for surveillance, sabotage or other activities on their behalf.

BRUSSELS, July 13 (Reuters) - The European Commission and more than a dozen countries launched an initiative on Monday to deliver €883.6 million ($1 billion) in aid projects to help Gaza recover from war.

The small coastal enclave remains in ruins more than 2-1/2 years after the conflict was triggered by the October 2023 attack on ​Israel by Palestinian militant group Hamas. A fragile ceasefire has been in place since last October, and the United Nations has estimated the cost of rebuilding work in Gaza at around $70 billion.