CAIRO - Talks between Israelis and Palestinians over a Gaza truce are continuing but the Egyptian mediators are still hopeful a deal can be reached later on Tuesday, an Egyptian official said.

"The talks are still continuing," the official, who declined to be named, told Reuters. He said Egypt was "hopeful" of an agreement later on Tuesday, adding: "We are more hopeful today than yesterday."

"We are waiting for the Israeli response," he said.

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