It was not a hostage situation, but was a military action under the Law of Armed Conflict.
Under that law, it is a crime to make defensive positions in civilian areas.
The attacker must give prior warning of the attack, which Israel did, and must seek to minimise civilian casualties.

The particular aid brought by the flotilla was delivered to a border crossing where the Gazans left it for months.

The Gazans were desperate for cancer and heart drugs, but were brought only out of date tamiflu which, long after the winter epidemic, could not be given away.

Deny any of that Jim?