JERUSALEM (Reuters) - Prime Minister Benjamin Netanyahu is considering easing Israels blockade of the Gaza Strip to allow in supplies for some Western-funded rebuilding projects, Israeli and Western officials said on Monday. But any easing of restrictions at border crossings with the Hamas-ruled enclave, devastated by an Israeli offensive earlier this year, would likely be incremental because of opposition within Netanyahus right-leaning government to any broader policy shift, they said. As part of the review of Gaza policy, Netanyahu and Defence Minister Ehud Barak are considering a U.N. proposal to oversee projects that get a green light from Israel to ensure that Hamas will not be able to seize rebuilding materials, diplomats said. One option, long sought by Western powers, would be for Israel to open the crossings to all items except those singled out as banned. Instead of having a list of what can go in, is it possible to have a list of what cant go in? one official quoted Netanyahu as asking. In addition to banning certain items, Israel now limits which types of authorised goods can go in on a day-to-day basis. Israeli and Western officials said it was unclear when any changes would be made and how long they might last. U.S. President Barack Obama will deliver a widely anticipated speech in Egypt on Thursday, part of efforts to revive stalled peacemaking with the Palestinians and neighbouring Arab states. Cairo sponsored a Gaza reconstruction conference earlier this year and both Arab and Western donors accuse Israel of preventing the work from getting started.