Israeli officials say around 1,200 people were killed in the surprise Palestinian assault and 251 taken hostages, 58 of are believed to still be in Gaza. The Palestinian Health Ministry in Gaza has estimated that more than 54,600 people have been killed amid the Israeli operations that ensued.

Hayya, said in a pre-recorded speech on Thursday the group had not rejected the latest U.S. proposal for a ceasefire with Israel but demanded changes that would secure the end of the war in the enclave.

The latest friction in negotiations comes as the fighting nears 20 months of war, and as desperation grows among hungry Palestinians and relatives of hostages in Gaza.