Hamas is considering a 40-day truce proposal from Israel in exchange for the release of hostages, following talks in Cairo.
The Hamas delegation returned to Qatar to discuss the offer and is expected to respond quickly.
The US and Egypt have urged Hamas to accept the truce, with the US describing the terms as "extraordinarily generous." The release of hostages is seen as the only obstacle to securing relief for civilians in Gaza.
Egypt, Qatar, and the United States have been working to broker a new agreement between Israel and Hamas after a one-week truce resulted in the exchange of 80 Israeli hostages for 240 Palestinian prisoners.
However, relentless Israeli bombardment of Gaza has devastated the territory, bringing its people to the brink of famine, and threatening to escalate into a wider regional conflict.
In Rafah, Palestinians mourned the loss of civilians, including children, in the latest strike.
Israel has vowed to target Hamas battalions in Rafah, where over 2 million people have sought refuge.
Top US diplomat Blinken is in the Middle East on a tour to promote a truce between Israel and Hamas in Gaza.
He urged Hamas to make a quick decision on the truce and expressed hope that they will do so.
Egypt's Foreign Minister Shoukry also expressed optimism and mentioned that the proposal takes into account positions of both sides.
The truce would include a 40-day ceasefire and the release of potentially thousands of Palestinian prisoners in exchange for the release of hostages.
Representatives from the US, Europe, and Arab countries met on the sidelines of the World Economic Forum to discuss advancing a two-state solution to the Israeli-Palestinian conflict.
Israel's Foreign Minister Katz hinted that the government may suspend military operations if a truce is reached.
Saudi Foreign Minister Prince Faisal bin Farhan emphasized the need for a Palestinian state as part of any lasting ceasefire between Israel and Hamas.
The US has encouraged Israel to support this idea by offering the prospect of normalized relations with Saudi Arabia.
However, Israeli Prime Minister Benjamin Netanyahu, who opposes Palestinian statehood, has previously rejected permanent ceasefires.
Hamas is seeking a deal that guarantees a permanent ceasefire, the return of displaced people, an acceptable prisoner exchange, and an end to the Gaza siege.
Netanyahu is under pressure from families of hostages taken by Hamas to secure their release.
On Monday, families of two Israeli captives, who were seen alive in a Hamas video, called for their release.
Aviva Siegel, wife of captive Keith Siegel, urged world leaders to help bring their loved ones home.
Israel believes there are 129 hostages in Gaza, including 34 believed to be dead.
The conflict between Hamas and Israel has resulted in the deaths of approximately 1,170 people in Israel, mostly civilians, and over 34,000 in Gaza, mostly women and children.
The health ministry in Gaza reported at least 34 deaths in the past 24 hours, down from a peak of 153 deaths on April 9.
At Al-Najjar hospital in Rafah, relatives mourned the dead.
Abu Taha, a spokesperson, called for a permanent ceasefire in Gaza following the killing of seven workers from a US charity in an Israeli drone strike.
Biden suggested US support for Israel could be conditional on protecting civilians and allowing aid access.
The White House stated Israel was letting more aid trucks in, but the UN continues to face access constraints.
The US is constructing a pier to boost humanitarian supplies at a cost of $320 million.
The UN has warned of increased disease risks due to a heatwave and insects in the swelling tent cities, with displaced Palestinians like Alaa Al-Saleh suffering from the heat.
The text describes a situation where individuals are confined and spending most of their time inside a tent.