Israel's block on deliveries into the war-stricken Gaza Strip has led to price increases and fears of food shortages, prompting punitive measures from the Hamas-run authorities against merchants, according to Hamas sources and witnesses.

Israel wants to extend the first phase of the deal with Hamas, rather than begin negotiations over the more politically fraught second stage.

Israel is giving Hamas “several days” to rethink terms for a new Gaza ceasefire, raising the prospect of further pressure tactics or a resumption of war.