The political echelon has decided to sanction Hamas after failing to deliver the remains of hostages it promised to deliver during negotiations.

As part of the response to Hamas's refusal to release the remains, the Rafah Crossing will not open on Wednesday, and humanitarian aid will be dramatically reduced. Three Israeli officials confirmed the decision to Reuters.

The defense establishment's recommendation was accepted by the prime minister at the last minute, according to several sources.

Egyptian teams are operating inside the Gaza Strip to recover the remains of Israeli hostages, sources told Qatar’s Al Araby TV on Tuesday.

The sources added that an Israeli technical team is consulting with Egyptian officials to resolve issues regarding the return of deceased hostages to Israel.

Contrary to the hostage-ceasefire deal agreed upon by both Israel and Hamas, Hamas has not expressed a willingness to transfer any of the 24 remaining deceased hostages to Israel on Tuesday. At this stage, it is unclear when the next transfer of deceased hostages will take place.

According to assessments in the security establishment, Hamas is simultaneously trying to exert pressure on Israel to expedite the opening of the Rafah crossing in both directions, the import of construction materials and various goods that were previously banned, and the beginning of rebuilding infrastructure in the Gaza Strip.

Red Cross vehicles transport hostages, held in Gaza since the deadly October 7, 2023 attack, following their handover as part of a ceasefire and hostages-prisoners swap deal between Hamas and Israel, in Gaza City October 13, 2025 in this still image taken from video. (credit: REUTERS/Reuters TV)

How will Israel respond?

At this stage, officials have not yet decided on how to proceed, but have reportedly conveyed clear and firm messages to involved parties, sources in the security establishment told Walla.

These sources estimated that after Simchat Torah, discussions will be held between the political and security officials, with recommendations from the Shin Bet, IDF, and Mossad being considered. They will also coordinate with the United States on how to proceed. The sources also said that the IDF's Hostages and Missing Persons Directorate, headed by Maj. Gen. (res.) Nitzan Alon has some information regarding the locations of deceased hostages buried in the Gaza Strip.

The Cairo Gaza summit

Egyptian President al-Sisi told a summit of world leaders on Monday that US President Donald Trump's Gaza proposal was the “last chance” for peace in the region and reiterated his call for a two-state solution.

Both Israel and Hamas were excluded from the discussions on the future of Gaza.

He said the current deal to end the war was “a once-in-a-lifetime chance to put the old feuds and bitter hatreds behind us.”

Part of the end of the conflict would see military pressure on both Israel and Palestinian leadership to maintain calm, according to officials who attended the summit.

“We need American engagement, even deployment on the ground, to identify the mission, task and mandate of this force,” Egyptian Foreign Minister Badr Abdelatty told The Associated Press.

Gaza will be governed by a 15 member committee of Palestinian technocrats, with no affiliation with any Palestinian terror groups and vetted by Israel, according to the vision shared by the Egyptian FM.

Jordan and Egypt are expected to take a leading role in training the new governing committee.

The IDF will not move from the yellow line

The sources who spoke with Walla also assessed that the political level would not quickly sever discussions with Hamas, and instead will attempt to resolve the issue diplomatically so Israel would not appear to have violated the negotiated hostage-ceasefire deal.

One source said, “Israel has significant leverage over Hamas in the current situation. First, there is no intention to move an inch from the yellow line, which is very bothersome to Hamas. There is no intention to allow the opening of the Rafah crossing in both directions. Additionally, Israel reserves the right to implement the agreement. It’s too early to determine what will happen.”

This is a developing story.