Israel has stopped all humanitarian aid from entering Gaza and warned of "additional consequences" if Hamas does not accept a new proposal for an extension of the first phase of the fragile ceasefire.
Hamas accused Israel of trying to derail the truce and said its decision to cut off aid is "cheap extortion, a war crime and a blatant attack on the (ceasefire) agreement". Both sides stopped short of saying the ceasefire had ended.
The first phase of the ceasefire, which included a surge in humanitarian assistance, expired on Saturday. The two sides have yet to negotiate the second phase, in which Hamas is expected to release dozens of remaining hostages in return for an Israeli pullout and a lasting ceasefire.
An Israeli official said the decision to suspend aid was made in co-ordination with the Donald Trump administration. Hundreds of aid trucks have entered Gaza daily since the ceasefire began on January 19, and it is unclear what the immediate impact of the aid cut-off will be.
Israeli Prime Minister Benjamin Netanyahu's office said earlier on Sunday that it supports what it described as a proposal from US Middle East envoy Steve Witkoff to extend the first phase of the ceasefire through Ramadan - the Muslim holy month of dawn-to-dusk fasting that began over the weekend - and the Jewish Passover holiday, which ends on April 20.
Under that proposal, Hamas would release half the hostages on the first day and the rest when an agreement is reached on a permanent ceasefire, according to Mr Netanyahu's office. A statement from Netanyahu's office said: "With the end of Phase 1 of the hostage deal, and in light of Hamas's refusal to accept the Witkoff outline for continuing talks - to which Israel agreed - Prime Minister Netanyahu has decided that, as of this morning, all entry of goods and supplies into the Gaza Strip will cease. Israel will not allow a ceasefire without the release of our hostages. If Hamas continues its refusal, there will be further consequences."
A Hamas spokesman said: "Netanyahu's decision to stop aid going into Gaza once again shows the ugly face of the Israeli occupation. The international community must apply pressure on the Israeli government to stop starving our people."
Hamas has said it is willing to free the remaining hostages all at once in phase two, but only in return for the release of more Palestinian prisoners, a permanent ceasefire and the full withdrawal of Israeli forces. An Egyptian official said Hamas and Egypt will not accept a new proposal aimed at returning the remaining hostages without ending the war. The official noted the agreement had called on the two sides to begin negotiations over phase two in early February.
The first, six-week phase of the ceasefire saw Hamas release 25 Israeli hostages and the bodies of eight others in exchange for the release of nearly 2,000 Palestinians imprisoned by Israel. Israeli forces pulled back from most of Gaza and Israel allowed a surge of humanitarian aid to enter.
But the first phase was marred by repeated disputes, with each side accusing the other of violations. Israeli strikes killed dozens of Palestinians who the military said had approached its forces or entered certain areas in violation of the truce.
Hamas paraded the captives - some of whom were emaciated - before crowds in public spectacles that Israel and the United Nations said were cruel and degrading. Hamas said Israel's aid suspension is another violation, saying deliveries are supposed to continue as the sides negotiate over the second phase of the deal.
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