The initiative, led by White House envoy Steve Witkoff, calls for the release of all remaining Israeli captives in exchange for an end to Israel's war on Gaza. It comes as Israel prepares a large-scale ground invasion of Gaza City, the largest urban centre in the besieged strip.
On Sunday, US President Donald Trump issued what he described as a "last warning" to Hamas, urging the group to accept ceasefire terms he said had already been approved by Israel.
"The Israelis have accepted my Terms. It is time for Hamas to accept as well," Trump wrote on his Truth Social platform. "I have warned Hamas about the consequences of not accepting. This is my last warning, there will not be another one."
Speaking two days earlier, Trump said the US was "in deep negotiations with Hamas" over a potential ceasefire and captive deal. "If you immediately release the hostages, good things are going to happen," he said. "But if you don't, it is going to be tough and nasty for you."
Hamas has, however, already accepted a 60-day truce proposal on 18 August with Egyptian mediation, which involves a phased exchange of Israeli captives and Palestinian prisoners and expanded humanitarian access – a framework drawn up with US input and nearly identical to one previously approved by Israel.
Despite this, Israel has yet to give a formal response and has instead launched its escalated military assault with the intention of occupying Gaza City.
In the past days, the Israeli military intensified strikes on the outskirts of Gaza City, demolishing several high-rise buildings in what appears to be the early phase of a broader campaign to seize the city and push nearly one million Palestinians, close to half the territory's population, toward the south.
While Israeli officials have not confirmed a timeline for the invasion, citing the need to preserve the "element of surprise", military operations in and around the city have escalated in recent days. The offensive is reportedly supported by Trump and is expected to intensify.
According to The Times of Israel, Israeli Prime Minister Benjamin Netanyahu told cabinet ministers during a meeting on Monday that Trump had urged him not to accept any partial ceasefire or captive-release deal with Hamas, warning that such agreements would lead to a series of "salami" mini-deals.
"Forget the partial deals. Go in with full force and finish this," Netanyahu quoted Trump as saying.
Despite his backing for Israel's plans, Trump has also urged Israel to act swiftly, warning that the war is becoming politically costly, particularly in the US.
"Israel will have to end this war," he said in an interview published on Monday by The Daily Caller. "They may be winning the war, but they are not winning in the court of public opinion, and it's hurting them."
Back-channel diplomacy
According to two sources familiar with the talks, Trump discussed the renewed push with Witkoff during a round of golf last Sunday. Witkoff subsequently contacted Palestinian-American businessman Bishara Bahbah, who has served as an informal intermediary with Hamas in recent months, and asked him to deliver a message.
That message, the sources said, was that if Hamas agreed to release all captives, Trump would "make sure the war ends". Bahbah relayed the proposal and later returned with a response from Hamas expressing willingness to engage in a comprehensive agreement.
A source familiar with Hamas's reply said the group had insisted that any release of captives must occur alongside a permanent ceasefire and the complete withdrawal of Israeli forces from Gaza.
Separately, Witkoff also enlisted Israeli peace activist Gershon Baskin to convey general principles for a ceasefire agreement to Hamas. Baskin, who has long-standing ties with senior Hamas official Ghazi Hamad, declined to comment. The White House did not respond to a request for comment.
Baskin previously played a key role in the negotiations that led to the release of Israeli soldier Gilad Shalit, who was held by Hamas from 2006 to 2011. He has also served as an intermediary between Israeli intelligence and Hamas.
Doubts over back channel's credibility
The use of new back channels has raised concerns among Israeli and US officials, mainly due to Hamas's deep distrust of efforts that bypass its traditional mediators, Egypt and Qatar.
Both countries have played a central role in previous ceasefire negotiations between Israel and Hamas, often with support from the CIA and UN officials. Hamas generally views their involvement as more neutral and internationally credible.
Israeli officials briefed on the Witkoff-Baskin initiative said it is unclear whether the effort will yield results. "The problem is that Hamas is very suspicious about Witkoff's back channels that bypass the Egyptians and Qataris," one Israeli official said. "Hamas doesn't see these back channels as reliable."
Officials said this mistrust stems in part from a previous incident in which Hamas released American-Israeli captive Edan Alexander, believing the move would prompt Washington to pressure Israel to end the war. That pressure never materialised.
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