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- Israel dismissed Hamas' offer to release Israeli-American Edan Alexander as "psychological warfare."
- Hamas seeks second-phase ceasefire talks, while Israel prefers extending the first phase.
- U.S., Qatar and Egypt mediate to release hostages and lift Gaza blockade.
CAIRO — Hamas said on Friday it had agreed to free an American-Israeli dual national if Israel begins the next phase of ceasefire talks towards a permanent end to the war, an offer Israel dismissed as "psychological warfare."
Hamas said it had made the offer to release New Jersey native Edan Alexander, a 21-year-old soldier in the Israeli army, after receiving a proposal from mediators for negotiations on the second phase of a ceasefire deal, which has halted major fighting since Jan. 19 but has been in limbo for two weeks.
The group said its exiled Gaza chief, Khalil Al-Hayya, was due to arrive in Cairo on Friday for further ceasefire talks with Egyptian mediators.
Since a temporary first phase of the ceasefire expired on March 2, Israel has rejected opening the second phase of talks, which would require it to negotiate over a permanent end to the war, the main demand of Hamas.
Israel says it wants to extend the ceasefire's temporary first phase, a proposal backed by U.S. envoy Steve Witkoff. Hamas says it will resume freeing hostages only under the second phase.
Prime Minister Benjamin Netanyhu's office called the offer to release Alexander "manipulation and psychological warfare."
"While Israel has accepted the Witkoff proposal, Hamas stands by its refusal and has not budged a millimeter," his office added. It said he would convene with his cabinet on Saturday night to discuss the hostage situation and decide on the next steps.
Israel has imposed a total blockade of Gaza since the first phase of the ceasefire expired without an agreement to begin the second phase on March 2.
Witkoff told reporters at the White House early in March that gaining the release of Alexander was a "top priority." U.S. hostage negotiator Adam Boehler met with Hamas leaders in recent days to seek Alexander's release.
Two Hamas officials told Reuters their agreement to release Alexander and the four bodies was conditional on beginning the talks on the second phase of the ceasefire, opening crossings, and lifting the Israeli blockade.
"We are working with mediators for the agreement to succeed and to compel the occupation to conclude all phases of the agreement," Abdel-Latif Al-Qanoua, the Hamas spokesperson, told Reuters.
"Hamas' approval to release Edan Alexander aims to push toward the conclusion of the phases of the agreement," said Qanoua.
Underscoring the fragility of the ceasefire, Gaza medics said four Palestinians were killed on Friday by an Israeli airstrike in the Zeitoun neighborhood in Gaza City.
Palestinian media said the four men had been collecting firewood needed for cooking in the absence of gas under the blockade. The Israeli military said it had struck several militants attempting to plant a bomb near its forces.
The United States, Qatar and Egypt have been trying to bridge the differences between the Islamic militant group and Israel to restart negotiations in order to release remaining hostages held in Gaza and lift the blockade.
The war began when Hamas carried out a cross-border raid into southern Israel on Oct. 7, 2023, killing 1,200 people and capturing 251 hostages, according to Israeli tallies.
Israel's subsequent assault on the Gaza Strip has killed more than 48,000 Palestinians, according to Gaza health officials, and reduced much of the territory to rubble.
