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Israel Refuses Hamas Deal No Swap of Terrorists for Hostage Bodies

Netanyahu considers Gaza annexation as Hamas refuses to negotiate and US envoy steps in.

Israel has formally rejected a chilling demand from Hamas to release live terrorists in exchange for the bodies of Israeli hostages, a move Israeli officials say is morally indefensible and strategically unacceptable.

The proposal, sent via mediators, was Israel's first detailed response to Hamas's latest position paper. It comes amid rising tensions and stalled negotiations, with Hamas insisting that talks will not resume until humanitarian conditions in Gaza improve. Israeli sources confirmed that Prime Minister Benjamin Netanyahu is considering partial annexation of the Gaza Strip if no progress is made on a hostage deal.

At a high-level cabinet meeting on Monday, Netanyahu discussed this potential course of action, signaling a dramatic policy shift if diplomacy fails. Defense Minister Israel Katz reinforced this stance, warning that if Hamas refuses to release the hostages, “it will pay a very heavy price.”

Amid this impasse, US Special Envoy to the Middle East Steve Witkoff arrived in Israel on Thursday in a bid to jumpstart negotiations. He is expected to assess the humanitarian situation in Gaza and meet with top Israeli leaders, including Netanyahu. Reports suggest Witkoff may also meet with National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich, whose opposition to certain terms has raised concerns in Washington about internal pressures that could derail a deal.

While many of the issues have reportedly been resolved in prior talks, critical disputes remain—chief among them Israel’s refusal to negotiate under coercive terms that reward terror. Mediators continue efforts to convene a new round of talks, hoping to secure a framework acceptable to both sides.

Back in Israel, the Hostage Families Forum is demanding more decisive action. They called on Prime Minister Netanyahu to publicly commit to a comprehensive agreement following a video message he sent via Brigadier General (Res.) Gal Hirsch, Israel's Coordinator for the Hostages and the Missing.

In a statement, the Prime Minister’s Office reiterated its commitment “We will continue to act responsibly, as we always have, and we will continue to strive for the return of our hostages and the defeat of Hamas. This is the only way to ensure peace for both Israelis and Palestinians.”

As Israel stands firm against immoral trade-offs and intensifies its strategic options, the path forward remains fraught but the commitment to justice and security for the Israeli people is unwavering.

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