Guarded optimism emerges over ceasefire deal in Gaza

Israelis and Palestinians are signaling new efforts to forge a ceasefire deal, even a limited one, for the first time in a year that would pause the fighting in Gaza and return to Israel some of the hostages still held in the Palestinian enclave.

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Israeli Defence Minister Israel Katz told his US counterpart Lloyd Austin in a phone call on Dec 11 that there was now a chance for a new deal that would allow the return of all the hostages, including US citizens, Mr Katz's office said.

However, a Western diplomat in the region said a deal was taking shape, but that it would likely be limited in scope, involving the release of only a handful of hostages and a short pause in hostilities.

Such a truce and release would be only the second since the start of the war in October 2023.

The guarded optimism emerged as US President Joe Biden's national security adviser Jake Sullivan headed to Israel for talks with Prime Minister Benjamin Netanyahu on Dec 12, and then to Egypt and Qatar, co-mediators with the US on a deal.

Separately, President-elect Donald Trump has demanded that militants of the Palestinian Hamas group release the hostages held in Gaza before he takes over from Mr Biden on Jan 20. Otherwise, Trump has said, there will be "hell to pay".

Trump's designated hostage envoy Adam Boehler has said that he, too, is involved, having already spoken to Mr Biden and Mr Netanyahu.

Israel says 100 hostages remain captive in Gaza. Seven are believed to be US citizens.