Mediators in talks on a new Gaza ceasefire and hostage release deal say they have presented a proposal which “narrows the gaps” between Israel and Hamas.
Qatar, Egypt and the US said in a joint statement that the past two days of discussions in Doha were “serious, constructive and conducted in a positive atmosphere”.
Senior officials would meet again in Cairo before the end of next week with the aim of finalising an agreement, they added. US Secretary of State Antony Blinken is heading to Israel on Saturday to intensify the diplomatic efforts.
US President Joe Biden declared that “we are closer than we’ve ever been” to a ceasefire, but a senior Hamas official expressed scepticism.
At the very least, this is a statement that buys more time, given the tensions in the region and the threats of retaliation against Israel from Iran for the assassination of Hamas political leader Ismail Haniyeh in Tehran and a senior Hezbollah commander in Beirut last month.
Any sign of progress in the Qatar talks was regarded as essential by governments desperate to avoid the war in Gaza spiralling into an all-out regional conflict.
The Israeli military launched a campaign in Gaza to destroy Hamas in response to an unprecedented attack on southern Israel on 7 October, during which about 1,200 people were killed and 251 others were taken hostage.
More than 40,000 people have been killed in Gaza since then, according to the territory's Hamas-run health ministry.
A deal agreed in November saw Hamas release 105 of the hostages in return for a week-long ceasefire and the freeing of some 240 Palestinian prisoners in Israeli jails. Israel says 111 hostages are still being held, 39 of whom are presumed dead.
The mediators' statement said the US had presented on Friday “a proposal that narrows the gaps between the parties and is consistent with the principles set out by President Biden on 31 May”.
Technical teams will continue to work over the coming days on the details of implementation before senior government officials meet again in Cairo, hoping to reach an agreement on the terms set out in Doha.
The statement ended by citing the American, Qatari and Egyptian leaders as warning that there was “no more time to waste and no excuses for further delay”.
“The path is now clear to achieve this outcome, save lives, bring relief to the people of Gaza, and calm regional tensions,” it added.
Later, Mr Biden told reporters at the White House: "I don't want to jinx anything... we may have something. But we're not there yet.”
In a later statement, the US president added that Secretary of State Antony Blinken was travelling to the Middle East in part "to underscore that with the comprehensive ceasefire and hostage release deal now in sight, no-one in the region should take actions to undermine this process".
While the mediators' statement is clearly a positive development, there is still a long way to go before a ceasefire is agreed.
Israeli Prime Minister Benjamin Netanyahu’s office was more cautious than Mr Biden, saying he appreciated the efforts to “dissuade Hamas from its refusal on a deal that would release the hostages”.
"Israel's core principles are well known to the US and the mediators, and Israel hopes their pressure will lead Hamas to accept the terms of 27 May, so the details of the agreement can be implemented," it added.
A senior figure from Hamas - which did not participate in the talks, but was in contact with Qatari and Egyptian officials - told the OceanNewsUK: “What the movement’s leadership was informed of today regarding the results of the Doha ceasefire meetings does not include a commitment to implement what was agreed upon on 2 July.”
The first phase of the deal outlined by President Biden, based on Israel’s 27 May proposal, would include a "full and complete ceasefire" lasting six weeks, the withdrawal of Israeli forces from all populated areas of Gaza, and the exchange of some of the hostages - including women, the elderly and the sick or wounded - for Palestinian prisoners held in Israel.
The second phase would involve the release of all other living hostages and a "permanent end to hostilities". The third would see the start of a major reconstruction plan for Gaza and the return of dead hostages' remains.
Before the talks resumed on Thursday afternoon, a Hamas official had said the key sticking points included Israel’s demand that it had full control over the Philadelphi corridor, a narrow strip of land running along Gaza’s southern border with Egypt, and that displaced people returning to northern Gaza be screened at the Israeli-controlled Netzarim corridor that effectively divides the territory in two.
A senior Palestinian official familiar with the negotiations told the OceanNewsUK after Friday’s talks ended that Israel had “shown flexibility on one outstanding issue - its veto of the names of some Palestinian prisoners”.
But, they said, it had “insisted on maintaining a military presence at the Philadelphi corridor and the Netzarim checkpoint during the first phase of the deal”, and “stipulated that those returning to northern Gaza would be inspected”.
Earlier, the UN made an urgent appeal for two seven-day pauses in the fighting in Gaza starting later this month to allow the vaccination of more than 640,000 Palestinian children against polio.
In recent weeks, traces of the poliovirus - which is spread through faecal matter - have been detected in sewage samples collected in the southern city of Khan Younis and central town of Deir al-Balah.
That means the virus is now circulating inside the Israeli-designated humanitarian zone, where hundreds of thousands of displaced Palestinians have sought refuge from the fighting.
"Let’s be clear: The ultimate vaccine for polio is peace and an immediate humanitarian ceasefire," UN Secretary General António Guterres said. “But in any case, a polio pause is a must. It is impossible to conduct a polio vaccination campaign with war raging all over."
Earlier, the Israeli military issued a new evacuation order for several blocks in northern Khan Younis and Deir Balah, further shrinking the humanitarian zone.
It said the blocks had become dangerous for civilians “due to significant acts of terrorism" and the firing of rockets and mortars towards Israel.
The UN agency for Palestinian refugees (Unrwa) said: “Once again, fear spreads as families have nowhere to go. People remain trapped in an endless nightmare of death and destruction on a staggering scale.”