Hostage deal phase 2 talks: Israel demands Gaza demilitarization, Hamas offers to release all hostages but insists on end of the war

With the end of the first phase of the ceasefire deal expected at the end of next week, Hamas and Israel are positioning themselves for the long-awaited negotiations over a second phase while preparing for a possible collapse of the deal and a resumption of the fighting in Gaza.

On Tuesday, both sides confirmed they had reached an agreement to combine the last two rounds of hostage releases of the first phase, and this will be carried out on Saturday.

In addition to the six living hostages who will be released on Saturday, the bodies of four hostages will be released this Thursday, and another four next Thursday, which will bring the first phase to an end.

A senior Israeli official, who briefed Israeli media outlets, praised this agreement as “an important achievement for Prime Minister Netanyahu, which was done in full coordination with the U.S.”

The regular media briefings by “senior political officials” are widely believed to be conducted on the instructions of Prime Minister Benjamin Netanyahu.

The source also added that the completion of the first deal was “an achievement that few thought would happen,” possibly to dampen expectations for a second phase.

In the statement, the source also characterized the talks about the second part of the ceasefire deal as a “political phase,” focused on a possible end to the war.

The official also stressed that the entry of “a small amount of caravans and heavy equipment” into the Gaza Strip in exchange for the hostage release won’t affect Trump’s proposals, “to which Prime Minister Netanyahu is fully committed.”

“Accordingly, the person leading Israel's efforts will be Strategic Affairs Minister Ron Dermer, and he will do so with the special envoy to the Middle East of the U.S. President, Steve Witkoff,” the official added.

This statement was the first official confirmation that Dermer would take over the leadership of the Israeli negotiating team from Mossad Director David Barnea and the Israel Defense Forces (IDF) hostage point man, Nitzan Alon, who had often clashed with Netanyahu over the negotiation strategy.

Dermer is reported to have long-standing and close relations with many in the new Trump administration. However, Channel 12 News reported that some hostage families expressed concerns over his appointment, citing recent meetings in which Dermer is said to have opposed any hostage deal that would include an end to the war without Hamas being destroyed.

Meanwhile, Hamas officials reiterated Hamas' demands that Israel commit to ending the war and fully withdraw IDF troops from the Gaza Strip.

On Tuesday, Hamas spokesman, Hazem Qassem, even offered to release all remaining hostages at once if Israel would agree to these demands.

“Israel’s demand to remove Hamas from Gaza is laughable, a mere psychological tactic. The resistance will not leave, and disarmament is out of the question,” Qassem added.

Another senior Hamas official told the Qatari newspaper Al-Araby Al-Jadeed that the terror group strongly opposes discussing any disarmament of Gaza. “As long as there is an occupation, the weapons of the resistance will be present,” he said.

In light of these statements, Israel continues to prepare for a possible resumption of fighting after the last hostages of phase 1 are released. The IDF has been massing troops and equipment at the Gaza border in preparation for an immediate return to fighting, Channel 12 reported.

“If Israel is forced to resume fighting in Gaza due to Hamas’s refusal, it will do so in a more intense and lethal manner; with full backing from the Trump administration, a renewed supply of weapons, fresh troops, and a completely different way of fighting,” the Israeli official said in the statement.

The source also stressed that Israel’s demands during the negotiations will correspond to the war goals set by the cabinet, which include the full dismantling of Hamas’ governmental and military capabilities, as well as the return of all hostages.

Accordingly, Channel 12 reported that Netanyahu told cabinet members he would insist on Hamas’ full disarmament, while also opposing any part of the Palestinian Authority in the post-war management of Gaza.

The report cited conversations from the closed-door Security Cabinet meeting Monday evening, which focused on the negotiations over phase 2. However, no conclusions were reached and an Israeli delegation is still awaiting instructions to travel to Qatar and begin the talks.