Palestinian sources reported progress on Thursday in efforts to salvage the ceasefire in Gaza from its worst crisis yet, with a view to ensuring that Hamas releases Israeli hostages this weekend as planned.

The truce that has largely halted fighting in the Israel-Hamas war was plunged into uncertainty after the militant group said it would not release hostages on Saturday, citing Israeli violations.

Israel hit back, saying that if Hamas failed to free captives on schedule, it would resume its war in Gaza.

"There is progress," one source told AFP, adding that mediators had obtained from Israel a "promise... to put in place a humanitarian protocol starting from this morning".

"Hamas has confirmed to Egyptian officials its commitment... to conducting the sixth exchange of prisoners on time, on Saturday, as soon as Israel honours its commitment," another source said.

US President Donald Trump had warned that "hell" would break loose if the Palestinian militant group failed to release "all" the hostages by then.

If fighting resumes, Israeli Defence Minister Israel Katz said, "the new Gaza war... will not end without the defeat of Hamas and the release of all the hostages."

"It will also allow the realisation of US President Trump's vision for Gaza," he added.

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© International Business Times