Israeli leaders on Wednesday dismissed Hamas’s latest claim of readiness for a sweeping hostage-prisoner exchange, underscoring the gulf between the sides as U.S. and regional players continue to probe for a way back to negotiations.

In a statement, Prime Minister Benjamin Netanyahu’s office said Hamas’s announcement was “another attempt to spin” the situation, reiterating that Israel would not end the war without the release of all hostages, the disarmament of Hamas, the establishment of a civilian-led government in Gaza and continued Israeli security control over the enclave.

Defense Minister Yisrael Katz struck an even sharper tone. “Hamas continues to deceive and issue empty words, but it will soon understand that it must choose between two options,” he said. “Accepting Israel’s conditions to end the war — first and foremost, the release of all hostages and disarmament — or Gaza City will become like Rafah and Beit Hanun. The IDF is fully prepared.”

The remarks came after Hamas reiterated its own conditions: a comprehensive deal under which all Israeli hostages would be released in exchange for an agreed number of Palestinian prisoners. The group made its announcement on Wednesday evening, shortly after President Donald Trump publicly called on Hamas to release all 20 living hostages.

Israeli opposition leader Yair Lapid urged Netanyahu to reengage. “The Israeli government does not have to accept Hamas’s conditions,” he said. “It does have to return to negotiations immediately and try to close a deal. It is impossible not to even try to bring our hostages home.”

Behind the scenes, U.S. officials are working to restart talks, according to informed sources. One source told the Jerusalem Post that Hamas’s statement could be viewed as “a response to Prime Minister Netanyahu’s demand for a comprehensive deal, indicating the opening positions of both sides.

The debate is also spilling into questions over the future governance of Gaza. Bishara Bahbah, a Palestinian-American involved in the hostage deal discussions, told Saudi Arabia’s Al-Arabiya channel that he had floated a proposal for the release of all hostages before Trump’s latest social media intervention. Hamas, he said, questioned its credibility.

“Israelis believe that Netanyahu will not agree to any deal without significant U.S. pressure,” Bahbah added.

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