Gaps between Israel and Hamas over a possible Gaza ceasefire have narrowed, according to Israeli and Palestinian officials' remarks on Monday, though crucial differences have yet to be resolved.

U.S. officials say both Hamas and Israel are making concessions toward securing a deal, but tempered optimism with differences remaining on key issues.

Analysis: Despite recent optimism, officials involved in Gaza ceasefire talks say Netanyahu is trying to appease Trump and could still sabotage any deal.

An agreement to halt the 14-month-old war in Gaza and free hostages held in the Palestinian enclave could be signed in coming days with talks in Cairo making progress, sources briefed on the meeting said on Tuesday.

Talks to reach a Gaza ceasefire and hostage release deal between Israel and Hamas are 90% complete, but key issues remain that need to be bridged, a senior Palestinian official involved in the talks told the BBC.

The White House was hoping for a Middle East ceasefire deal by Christmas but it doesn't look like that will happen with fighting picking up once again in the Gaza Strip.

U.S. and Arab mediators are working round-the-clock to hammer out a ceasefire deal between Israel and Hamas, sources close to the talks said, while in the Gaza Strip medics said Israeli strikes had killed 13 Palestinians on Thursday.