By Ibrahim Dahman, Tim Lister, Tamar Michaelis, Mohammed Tawfeeq and Dana Karni

(CNN) — The first phase of the ceasefire in Gaza, under which dozens of Israeli hostages and hundreds of Palestinian prisoners and detainees were freed, reached its expiration date on Saturday — with Israel and Hamas split on what comes next.

In essence, the Israelis want phase one to continue – the exchange of hostages, alive and deceased, in return for the continued release of Palestinian prisoners and detainees, and the flow of higher volumes of aid into Gaza. There are thought to be 24 Israeli hostages still alive in Gaza.

But Hamas insists that negotiations include the withdrawal of Israeli forces from parts of Gaza they still occupy and a permanent end to the conflict, as envisaged in the second phase of the deal.

Following a consultation with ministers on Saturday, Israel’s Prime Minister Benjamin Netanyahu’s office said in the early hours of Sunday that Israel backs a US proposal to temporarily extend the current ceasefire during the Islamic holy month of Ramadan and the Jewish holiday of Passover.

According to that framework, the ceasefire extension would start with a significant release of half of the remaining Israeli living and deceased hostages in Gaza. The statement said: “On the first day of the framework, half of the living and deceased hostages will be released and upon its conclusion – if agreement is reached on a permanent ceasefire – the remaining living and deceased hostages will be released.”

Hamas would not comment on the Israeli prime minister’s office statement on Sunday.

But because the US-proposed extension would not mean entering the second phase of the deal, Hamas spokesperson Hazem Qassem appeared to rule out that approach on Saturday, telling CNN that Israel “aims to recover its captives while maintaining the possibility of resuming aggression against the Gaza Strip, which contradicts the terms of the agreement.”

“Extending the first phase in the manner proposed by the occupation is unacceptable to us,” he said.

The original ceasefire agreement stipulates that the truce can continue so long as negotiators are talking, but it’s not clear they are.

An Israeli delegation abruptly returned from Cairo on Friday, one day after arriving there. An Israeli source familiar with the matter told CNN earlier in the week that Israel was trying to prolong the first phase of the agreement “by as much as possible” in the hope of releasing more hostages.

United Nations Secretary-General António Guterres issued an urgent appeal on Saturday for all parties to avoid a return to violence, saying, “It is imperative that all efforts be made to prevent a return to hostilities, which would be catastrophic.”

In an apparent attempt to add to the pressure, Hamas on Saturday released a propaganda video on Saturday showing Israeli hostages in Gaza, including a scene of recently freed captive Iair Horn bidding farewell to his brother Eitan, who remains in captivity after 512 days.

Iair and Eitan’s family authorized media’s use of the video, according to the Hostages and Missing Families Forum Headquarters, saying in a statement: “We demand from the decision-makers: Look Eitan in the eyes. Don’t stop the agreement that has already brought dozens of hostages back to us. They are running out of time! Bring everyone home, now, in one phase,” it said.

The Israeli Prime Minister’s Office condemned the video as cruel “psychological warfare.”

What the ceasefire achieved so far

The ceasefire came into effect in January. Altogether 33 Israeli hostages were released – including two men held in Gaza for a decade – as well as five Thai citizens who had been working on kibbutz in southern Israel when they were taken hostage. Eight bodies were returned. They included the remains of Shiri Bibas and her two small sons - a hugely emotional moment for Israelis.

A total of 1,737 Palestinian prisoners and detainees were released, including 120 women and children. About 1,000 of those released had been arrested after the Hamas attacks on Israel in October 2023; others were serving long sentences, including life. Some had been in Israeli prisons for decades.

Israeli forces also withdrew from a key corridor splitting north and south Gaza.

The first phase was not smooth, with accusations by each side that the other was contravening the agreement. Israel was aggrieved by the choreographed hostage handover ceremonies organized by Hamas, and especially by the return of a body said to be that of Shiri Bibas which turned out to be that of a Gazan woman.

In return, Hamas accused Israel of delaying the return of people in Gaza to the north, part of the first phase of the agreement, and of obstructing the entry of essential medicines and hospital supplies, as well as tents, prefabricated houses, fuel and rubble-removing machines into Gaza

There were several delays and changes to the schedule, and a good deal of brinkmanship, but international mediators were able to keep the deal alive.

Against this background, talks were due to start at the beginning of February on the second phase of the deal. These were repeatedly delayed, amid accusations from Hamas that Israel was showing no interest in phase two.

Right-wing members of the Israeli cabinet have demanded a return to war once the first phase was complete. Their support is critical in sustaining Netanyahu’s administration, which must pass a budget by the end of the month.

Hamas has shown during the first phase of the deal that it is still standing, even if battered. The goals of turning the ceasefire into a permanent end to hostilities and the destruction of Hamas are irreconcilable, short of the group agreeing to be disarmed. It has shown no sign of that.

Waiting in the wings is the evolving Arab plan to offer an alternative to US President Donald Trump’s blueprint for removing Gaza’s 2 million people. Regional sources say it envisages a 10-year mandate for the reconstruction, governance and security of Gaza and it is due to go to an Arab League summit on Tuesday. It would then be conveyed to the Trump administration.

But it is a long-term plan predicated on a solid and sustainable end to hostilities. The Israeli government has shown no sign it is ready for that.

The-CNN-Wire
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