Israel refuses to accept Hamas' demands to end the war in exchange for all hostages, citing a fundamental lack of trust that the organization would honor such an agreement. A diplomatic source told Israel Hayom that Hamas leadership understands the remaining hostages represent their final insurance policy against complete destruction.
"It is unrealistic to expect they would genuinely commit to an agreement, or subsequently honor it, if it includes releasing all hostages," the source explained, as Israel and the terrorist organization appear deadlock over the talks to proceed to Phase 2 of the hostage deal, days after Phase 1 was completed. The diplomatic source believes Hamas will instead employ delay tactics during negotiations or demand robust international guarantees, such as a Security Council resolution, that would effectively prevent Israel from resuming military operations afterward.

This assessment explains why Prime Minister Benjamin Netanyahu continues pursuing a phased approach to hostage releases. "We learned on October 7 that we are not dealing with idiots. They understand that returning all hostages would end their protection, which is why we don't believe that's their actual intention," the diplomatic source said.
The source revealed that Israel has developed a graduated pressure campaign against Hamas, including the previously reported measures to restrict electricity and water supplies to Gaza. According to the source, additional civilian and military measures have been prepared, with full-scale war resumption representing the most extreme option. The senior Israeli official emphasized that current government actions aim primarily to pressure Hamas into releasing hostages rather than destroying the organization outright.
However, the source made clear there are limits to Israel's patience, stressing, "We will not permit a ceasefire without hostage releases. The current situation cannot continue indefinitely."