Palestinians search for casualties under the rubble in the aftermath of Israeli strikes in Khan Younis, Gaza. File/Reuters

A Hamas delegation is due to arrive Monday in Egypt, where it will respond to Israel's latest proposal for a long-sought hostage-release deal and truce in the Gaza Strip after almost seven months of war.

Egypt, Qatar and the United States have been trying to mediate an agreement between Israel and Hamas for months, as the death toll in Gaza rises and calls for a deal intensify.

But despite intense pressure to reach a ceasefire, secure the release of hostages held in Gaza and allow more humanitarian aid into the war-battered territory, a deal has remained elusive.

The Palestinian group Hamas said on Sunday it had no "major issues" with the content of Israel's most recent offer for a truce.

"The atmosphere is positive unless there are new Israeli obstacles," a senior Hamas official told the media, speaking on condition of anonymity.

Humanitarians say the war has brought Gaza to the brink of famine, reduced much of it to rubble and raised fears of broader conflict.

Palestinians inspect the rubble of destroyed buildings following Israeli airstrikes on Khan Younis, Gaza. File/AP

At a market in the southern Gaza city of Rafah, where Israeli officials have vowed to rout Hamas fighters, shoppers said prices of fresh vegetables have risen.

Mohammed Sarhan, 48, said 100 shekels ($26) used to buy enough for a week, but now it is "not enough for one meal for my family".

More than one million Palestinians have taken shelter in the city.

Protesters in Israel are demanding that the government secure the freedom of hostages seized by Palestinian group Hamas during the unprecedented October 7 attack that triggered the war.

Since a one-week halt to the fighting in November saw 80 Israeli hostages exchanged for 240 Palestinians held in Israeli prisons, mediators Egypt, Qatar and the United States have been working to secure a new truce.

Barbed wire surrounds a camp for displaced people in Rafah, Gaza. File/AFP

Hamas's October attack resulted in the deaths of about 1,170 people in Israel, mostly civilians, according to an AFP tally of Israeli official figures.

Israel's retaliatory offensive has killed at least 34,454 people in Gaza, mostly women and children, according to the health ministry in the Hamas-run territory.

Israel estimates that 129 hostages are still being held in Gaza, including 34 the military says are dead.

Hamas has previously insisted on a permanent ceasefire -- a condition Israel has rejected.

Agence France-Presse