The comments, made at the end of a G7 foreign ministers' meeting in Japan, echoed White House remarks on Tuesday suggesting opposition to a long-term occupation of Gaza.
The G7 called for humanitarian pauses in the conflict in a joint statement, and urged Israel to comply with humanitarian law, but did not say whether it was currently doing so.
By contrast the UN secretary general, António Guterres, said there was something "clearly wrong" with Israel's military operations against Hamas when so many civilians were being killed. "There are violations by Hamas when they have human shields," Guterres said.
"But when one looks at the number of civilians killed with the military operations there is something clearly wrong."
He added: "It is also important to make Israel understand that it is against the interests of Israel to see every day the terrible image of the dramatic humanitarian needs of the Palestinian people. That doesn't help Israel in relation to the global public opinion."
Giving his vision of Gaza after the destruction of the military power of Hamas, Blinken said: "Gaza cannot ... continue to be run by Hamas; that simply invites repetition of 7 October," referring to the attacks by Hamas on Israel in which at least 1,400 people were killed.
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