Israel has called its negotiators back from Doha after deeming the mediated truce talks on Gaza at "a dead end" because of demands put forth by Hamas, news agency Reuters quoted a senior Israeli offiial as saying.
The official is close to the Mossad spymaster, who is heading the talks, the agency reported. The official has accused Yahya Sinwar, Hamas' Gaza leader, of sabotaging the diplomacy "as part of a wider effort to inflame the war over Ramadan," Reuters reported.
Israel and Hamas had stepped up negotiations, mediated by Egypt and Qatar, on a six-week suspension of Israel's offensive in exchange for the release of 40 of the 130 hostages held by Hamas in Gaza.
Hamas has sought to parlay any deal into an end to the fighting and witdhrawal of Israeli forces, Reuters reported, adding that Israel has ruled it out, saying it will eventually resume efforts to dismantle the military and governance capabilities of Hamas.
Hamas also wants the thousands of Palestinians who fled from Gaza city and its surrounding areas to the south to be allowed to return to the north.
The Israeli official said that Israel had agreed to double the number of Palestinians it would release in exchange for the hostages to 700-800 prisoners and allow some displaced Palestinians to return to northern Gaza.
Israeli Prime Minister Benjamin Netanyahu's office said on Tuesday that Hamas had made "delusional" demands, which it said showed the Palestinians were not interested in a deal.
In Tel Aviv, a crowd of around 300 family members of hostages and their supporters gathered outside the Israeli defence headquarters demanding a deal be done to release the captives. Some locked themselves inside cages in protest, holding placards with photos of their loved ones. "No price is too high," one of the signs said.
Hamas has accused Israel of stalling at the talks while it carries out its military offensive.
The discussions in Doha are continuing as Palestinians in Gaza face severe shortages of food, medicine and hospital care, and concerns grow that famine will take hold.
With inputs from Reuters
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