Israeli officials express optimism over cease-fire talks with Hamas

Senior Israeli officials said progress has been made in negotiations for a cease-fire in Gaza that would include the release of hostages and Palestinian prisoners, a move that drew criticism from far-right ministers who threatened to bring down the government. “We’ve reached a critical point,” Foreign Minister Israel Katz told Army Radio on Monday. “If matters work out, a large number of hostages will return home and then, in stages, everyone. But remember that we are dealing with Hamas and there is not a lot of time. I am more optimistic than I was.”

Defense Minister Yoav Gallant told military recruits that progress in the war has allowed Israel “to make difficult decisions to return the hostages. I think we are at an appropriate point.” A session of the security cabinet, which generally meets on Thursday evening, has been called for Tuesday, television channels reported. The comments were the most positive in months from top officials on the talks between Israel and Hamas, which have been mediated by the U.S., Egypt and Qatar. Just last week, Israeli officials said large gaps remained between the two sides, with the Iran-backed militant group demanding a complete withdrawal of Israeli troops from Gaza before any hostages would be freed.

Yet international pressure has intensified on the Israelis since a missile strike killed seven aid workers delivering food to displaced Palestinians a week ago, with President Joe Biden telling Israel Prime Minister Benjamin Netanyahu that ongoing U.S. support depends on improved steps to protect civilians. On Sunday, Netanyahu announced a withdrawal of combat troops from the city of Khan Younis after four months of fighting, the first significant scaling back of ground forces since a week-long cease-fire that ended in early December. Some have interpreted the move as a signal to Hamas a deal is on the table.

Israeli assets rallied on Monday, in part because of optimism a truce is nearer. The main stock index gained 1.5% as of 12:30 p.m. in Tel Aviv, while the shekel strengthened 1.3% against the dollar to head for its second-best daily performance of the year.

The scaling back of ground forces — alongside the ministers’ comments — angered Netanyahu’s far-right coalition partners who want the war to continue.