Negotiations between the sides have been ongoing since early last week. They are aimed at ending the latest war between Israel and Hamas-led Islamic militants in the Gaza Strip and improving conditions for the territory's 1.8 million people. Israel wants guarantees to end rocket fire and attacks on its citizens.
Israeli Prime Minister Benjamin Netanyahu opened his government's weekly Cabinet meeting Sunday by saying "We are in the midst of a joint military and political campaign. The delegation in Cairo is operating under clear guidelines to stand by Israel's needs."
"Only if there is an answer to these needs will we reach an understanding. We are a strong and determined nation. If Hamas thinks that it can cover its military defeat with a political achievement, it is mistaken. As long as the quiet does not return, Hamas will continue to suffer very serious blows."
A member of the Palestinian delegation told The Associated Press on Sunday that the gaps between the sides were still significant and that it was far from certain whether a deal could be reached before the cease-fire expires.
"We are less optimistic than we were earlier," he said.
The negotiator said that a key sticking point remains Hamas's insistence that Israel pledge to end its Gaza blockade before the talks conclude. He spoke on condition of anonymity because he is not authorized to discuss the issue with journalists.
Under the terms of an Egyptian proposal, Israel and the West Bank-based Palestinian Authority would negotiate the end to the blockade at some point in the future. The blockade has restricted the flow of goods into Gaza and blocked virtually all exports, as well as limited Palestinians' movement in and out of the territory.
The Times of Israel, citing a Palestinian news agency, reported that Palestinian President Mahmoud Abbas had called on Hamas leader Khaled Mashaal to accept the Egypt-proposed truce when the two met in Qatar Saturday.
Israel says the blockade is necessary to prevent arms smuggling, and officials are reluctant to make any concessions that would allow Hamas to declare victory.
Israel, meanwhile, is demanding that Hamas be disarmed, or at the very least, be prevented from re-arming, something the militant group has rejected.
Hamas has recovered from previous rounds of violence with Israel, including a major three-week air and ground operation in January 2009 and another weeklong air offensive in 2012. It still has an arsenal of several thousand rockets, some with long ranges and relatively heavy payloads.
The current round of fighting began after Hamas resumed firing rockets at Israel following the arrests of suspected Hamas-affiliated militants in the West Bank. Israel said the arrests came as part of the investigation into the killing of three Israeli teens in June.
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