Hamas on Friday said it "considers positively" an Israeli roadmap towards a full Gaza ceasefire announced by US President Joe Biden, who urged an end to the almost eight-month war.
But swiftly afterwards, Israeli Prime Minister Benjamin Netanyahu poured cold water on Biden's talk of peace, insisting the army would continue fighting until it had "eliminated" Hamas's capacity to rule Gaza and pose a military threat.
Biden's address came as Israeli troops pushed into central Rafah, escalating the war with Hamas despite international objections to any assault on the southern Gaza city.
Outlining how the war might end, Biden said Israel's three-stage offer would begin with a six-week phase that would see Israeli forces withdraw from all populated areas of Gaza.
It would also see the "release of a number of hostages, including women, the elderly, the wounded, in exchange for (the) release of hundreds of Palestinian prisoners".
Israel and the Palestinians would then negotiate during those six weeks for a lasting ceasefire -- but the truce would continue while the talks remained underway, Biden said.
The US president urged Hamas to accept the Israeli offer. "It's time for this war to end, for the day after to begin," he said, in comments echoed by British Foreign Secretary David Cameron.
Hamas in a statement on Friday evening said it "considers positively" Biden's speech regarding "a permanent ceasefire, the withdrawal of Israeli forces from Gaza, reconstruction and the exchange of prisoners".
UN chief Antonio Guterres "strongly hopes" the latest development "will lead to an agreement by the parties for lasting peace", his spokesman Stephane Dujarric said.
German Foreign Minister Annalena Baerbock said the Israeli offer "provides a glimpse of hope and a possible path out of the war's deadlock", while EU chief Ursula von der Leyen welcomed a "balanced and realistic" approach to end the bloodshed.
Israel insists on war aims
But Netanyahu took issue with Biden's presentation of what was on the table, insisting the transition from one stage to the next in the proposed roadmap was "conditional" and crafted to allow Israel to maintain its war aims.
"The prime minister authorised the negotiating team to present an outline for achieving (the return of hostages), while insisting that the war will not end until all of its goals are achieved," Netanyahu's office said in a statement.
Hamas leader Ismail Haniyeh accused Israel of "using negotiations as a cover to continue its aggression".
Those aims include "the return of all our hostages and the elimination of Hamas's military and governmental capabilities", it added.
"The exact outline proposed by Israel, including the conditional transition from stage to stage, allows Israel to maintain these principles."
Hamas has been careful about commenting on ceasefire proposals put to it by Egyptian, Qatari or US mediators. It accepted one earlier this year only for it to be disavowed by Israel.
Earlier on Friday, Hamas leader Ismail Haniyeh accused Israel of "using negotiations as a cover to continue its aggression", saying Hamas "refuses to be a part of these manoeuvres".
Israel has repeatedly vowed to destroy Hamas since the Palestinian group attacked southern Israel on October 7.
Israel sent tanks and troops into Rafah in early May, ignoring concerns over the safety of displaced Palestinian civilians sheltering in the city on the Egyptian border.
On Friday, soldiers were operating in the city centre where they uncovered rocket launchers and tunnel shafts and dismantled a Hamas weapons storage facility, the army said.
Agence France-Presse