CAIRO, AUG 26: A ceasefire talks in Cairo regarding the ongoing Gaza conflict failed to reach an agreement on Sunday, as neither Hamas nor Israel accepted the compromises proposed by mediators, according to two Egyptian security sources. This failure casts doubt on the chances of a breakthrough in the US-backed effort to bring an end to the 10-month war.

Despite this, a senior US official described the talks as “constructive,” noting that all parties engaged with the intention of achieving a “final and implementable agreement.”

The official, speaking anonymously, added that the process would continue over the coming days, with working groups set to address unresolved issues and details. The negotiation teams will remain in Cairo.

Months of intermittent discussions have yet to yield an agreement to cease Israel’s military actions in Gaza or to secure the release of hostages captured by Hamas during their October 7 attack on Israel, which initiated the current conflict. Speaking in Halifax, Canada, US National Security Advisor Jake Sullivan stated that the United States was still “feverishly” working in Cairo to broker both a ceasefire and a deal on the hostages.

A central issue in the ongoing negotiations, mediated by the United States, Egypt, and Qatar, involves the Philadelphi Corridor, a 14.5-kilometre-long stretch along Gaza’s southern border with Egypt. Israeli forces have maintained a presence in this corridor, and several alternatives to this presence were proposed but rejected by both parties, according to Egyptian sources. Israel also raised concerns about some Palestinian detainees Hamas is demanding be released, with Israel insisting these individuals must leave Gaza if they are freed.

Significant exchanges have taken place since Thursday between teams from Israel, the US, and Egypt in an effort to resolve the remaining differences. On Saturday, Qatar and Egypt met with senior Hamas representatives to discuss the proposal in detail. On Sunday, Israeli officials joined the talks, though it remains unclear whether any major progress was made.

Hamas has accused Israel of reneging on its prior commitment to withdraw troops from the Philadelphi Corridor and of introducing new demands, such as screening displaced Palestinians before they return to the northern part of Gaza when a ceasefire is established.

Hamas official Osama Hamdan made clear that the group would not accept any deviations from the July 2 agreement or any newly imposed conditions.

In July, Hamas agreed to a US proposal to initiate discussions on releasing Israeli hostages, including soldiers, 16 days after the first phase of an agreement to end the Gaza war. A senior Hamas source confirmed this to Reuters.

Following Sunday’s talks, a Hamas delegation departed Cairo. Senior official Izzat El-Reshiq stated that the group had reiterated its demand that any deal must include a permanent ceasefire and the full withdrawal of Israeli forces from Gaza.