Hamas said on Tuesday it was ready to reach a deal to end the war in Gaza based on President Donald Trump's plan but still has demands, as Qatar's prime minister and senior U.S. mediators headed to Egypt to join indirect negotiations between the Palestinian militant group and Israel.
On the second anniversary of Hamas' attack on Israel that triggered Israel's assault on Gaza, Trump expressed optimism about progress toward a Gaza deal.
An American team including special envoy Steve Witkoff and Jared Kushner, Trump's son-in-law and his Middle East envoy during his first term, left for the talks.
"I think there's a possibility that we could have peace in the Middle East" beyond just Gaza, Trump told reporters in Washington.
A source close to the talks said they had adjourned for the day and the atmosphere was better than Monday.
Negotiations on Wednesday would be a decisive indicator of whether progress was possible given the presence of the senior mediators, the source said.
Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani of Qatar, a key mediator, will join Wednesday's talks, an official said, "with the aim of pushing forward the Gaza ceasefire plan and hostage release agreement".
On the second day of talks in the Egyptian resort of Sharm el-Sheikh, top Hamas leader Khalil Al-Hayya told Egyptian state-affiliated Al Qahera News TV the group had come "to engage in serious and responsible negotiations."
He said Hamas was ready to reach a deal, yet it needed a "guarantee" to end the war and ensure "it is not repeated".
Officials urge caution
The talks appeared to hold the most promise yet of ending the war. But officials on all sides urged caution over the prospects for a rapid agreement, as Israelis remembered the bloodiest single day for Jews since the Holocaust and Gazans voiced hope for an end to the suffering brought by Israel's onslaught.
Even if a deal is clinched, questions will linger over who will govern Gaza and rebuild it, and who will finance the reconstruction.
Trump and Israeli Prime Minister Benjamin Netanyahu have ruled out any role for Hamas.
Hamas sets out conditions
Trump met Witkoff and Kushner, who will join the talks on Wednesday, for an update on negotiations before they departed for Egypt, a senior U.S. official said. They discussed issues such as the safety of hostages and security guarantees, the official added.
"The (Hamas) movement's delegation participating in the current negotiations in Egypt is working to overcome all obstacles to reaching an agreement that meets the aspirations of our people in Gaza," senior Hamas official Fawzi Barhoum said in a televised statement.
He said a deal must ensure an end to the war and a full Israeli withdrawal from Gaza - conditions that Israel has never accepted.
Israel, wants Hamas to disarm, something the group rejects.
Hamas wants a permanent, comprehensive ceasefire, a complete pullout of Israeli forces and the immediate start of a comprehensive reconstruction process under the supervision of a Palestinian "national technocratic body", he said.
Underlining the obstacles at talks, an umbrella of Palestinian factions including Hamas issued a statement vowing a "resistance stance by all means" and saying "no one has the right to cede the weapons of the Palestinian people".
Netanyahu: 'fateful days of decision'
Netanyahu did not comment on the status of the talks. But in a statement on X, he told Israelis they were in "fateful days of decision."
"We will continue to act to achieve all the war's objectives: the return of all the hostages, the elimination of Hamas' rule, and the assurance that Gaza will no longer pose a threat to Israel," he said.
U.S. officials suggest they want to initially focus talks on a halt to the fighting and the logistics of how the Israeli hostages in Gaza and Palestinian detainees in Israel would be freed.
Strikes continue
In the absence of a ceasefire, Israel has pressed on with its offensive in Gaza, increasing its international isolation.
Global outrage has mounted against Israel's assault, which has internally displaced nearly Gaza's entire population and set-off a starvation crisis. Multiple rights experts, scholars and a United Nations inquiry say it amounts to genocide.
Israel calls its actions self-defense after the 2023 Hamas attack and denies accusations of genocide.
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