Hamas said on Wednesday it is reviewing what U.S. President Donald Trump described as a “final” ceasefire proposal for Gaza. The Palestinian group insists that any agreement must include a full Israeli military withdrawal from the enclave. Meanwhile, Israeli Prime Minister Benjamin Netanyahu reiterated his stance that Hamas must be eradicated.

Mourners react during the funeral of Palestinians, who, according to Gaza’s health ministry, were killed in an overnight Israeli strike on a tent, at Nasser Hospital in Khan Younis, southern Gaza Strip, July 2, 2025. REUTERS/Hatem Khaled

The ceasefire plan, which reportedly includes a 60-day truce, follows a meeting between Trump’s representatives and Israeli officials. Trump claimed Israel has agreed to the terms necessary to finalize the deal.

U.S. President Donald Trump welcomes Israeli Prime Minister Benjamin Netanyahu at the entrance of the White House in Washington, D.C., U.S., April 7, 2025. REUTERS/Leah Millis

Hamas calls for end to war and withdrawal

In a statement, Hamas confirmed it is studying proposals presented by Egypt and Qatar. The group’s goal, it said, is to reach a deal that ends the war and ensures Israel’s departure from Gaza.

FILE PHOTO: Palestinian Hamas militants stand guard on the day of the handover of hostages held in Gaza since the deadly October 7 2023 attack, as part of a ceasefire and a hostages-prisoners swap deal between Hamas and Israel, in Rafah in the southern Gaza Strip, February 22, 2025. REUTERS/Hatem Khaled/File Photo

Israeli Prime Minister Netanyahu offered no indication of compromise. “There will not be a Hamas. There will not be a ‘Hamastan’. We’re not going back to that. It’s over,” he said during a pipeline meeting.

Mixed reactions from Gaza residents

A Palestinian inspects the damage at a school sheltering displaced people, following an overnight Israeli airstrike, in Gaza City, July 3, 2025. REUTERS/Dawoud Abu Alkas

Reactions among Gaza’s civilians remain cautious. “I hope it would work this time, even if for two months, it would save thousands of innocent lives,” said Kamal, a Gaza City resident on the phone with Reuters. Others questioned the durability of Trump’s involvement, pointing to his influence during the Israel-Iran conflict earlier this year.

Pressure builds on Netanyahu

Domestic and international pressure is mounting on Netanyahu to reach a deal. While hardliners in his coalition remain opposed, Israeli opposition leader Yair Lapid signaled support for an agreement by offering to back the government in parliament to avoid collapse.

Israeli Foreign Minister Gideon Saar also expressed cautious optimism. “There are some positive signs,” he said during a visit to Estonia, adding that Israel aims to begin proximity talks soon.

Hostage deal central to negotiations

Of the 50 hostages still held by Hamas, only about 20 are believed to be alive. The U.S.-backed ceasefire plan would involve the release of half the hostages in exchange for Palestinian prisoners and the remains of Palestinians, with further releases tied to a permanent end to the war. Hamas had earlier requested amendments to the proposal, which Trump’s envoy called “totally unacceptable.”

An Israeli military convoy manoeuvres near the Israel-Gaza border, as seen from Israel, July 1, 2025. REUTERS/Amir Cohen TPX IMAGES OF THE DAY

A source close to Hamas said group leaders will debate the new proposal and seek clarifications before offering an official response.

Heavy casualties continue in Gaza

Despite the renewed diplomatic efforts, fighting on the ground has not eased. At least 139 Palestinians have been killed in the past 24 hours, according to Gaza health authorities. Victims include Marwan Al-Sultan, director of the Indonesian Hospital in northern Gaza, his wife, and five children, who died in an Israeli airstrike.

Palestinians react over bodies as they mourn doctor Marwan al-Sultan, director of the Indonesian Hospital in northern Gaza Strip, his wife, his daughter and and his sister, who were killed in an Israeli strike on Wednesday, according to Gaza’s health ministry, at Al-Shifa hospital in Gaza City, July 2, 2025. REUTERS/Mahmoud Issa

The Israeli military said it had targeted a Hamas “key terrorist” and is reviewing reports of civilian casualties. It added that measures are taken to minimize harm to those not involved in combat.

The ongoing war began on October 7, 2023, when Hamas fighters launched a deadly assault into Israel, killing 1,200 people and taking 251 hostages, according to Israeli data. Israel’s retaliatory campaign has since killed over 57,000 Palestinians and displaced nearly the entire population of 2.3 million, according to Gaza’s health ministry.