Israel’s dilemmas ahead of the hostage’s deal possible second phase

Netanyahu hold security assessment alongside security officials trying to ensure release of all Israeli hostages; while Hamas seeks deal’s second phase, Israeli interests align with extended first phase

Prime Minister Benjamin Netanyahu is holding a security assessment on Saturday, with an Israeli official stating the goal is to return all hostages, both living and deceased.

Meanwhile, Israel is delaying the release of Palestinian prisoners in response to Hamas’ breach of the agreement by returning the body of an unrelated Palestinian woman instead of Shiri Bibas, who was murdered in captivity. A decision on how Israel will proceed will be made after the meeting.

Participants include Mossad chief David Barnea, Shin Bet chief Ronen Bar, Defense Minister Israel Katz, Foreign Minister Gideon Sa’ar, Shas party leader Aryeh Deri, Finance Minister Bezalel Smotrich, outgoing IDF Chief of Staff Lt. Gen. Herzi Halevi, and incoming Chief of Staff Maj. Gen. (res.) Eyal Zamir and other officials.

Strategic Affairs Minister Ron Dermer, leading negotiations for the second phase of the hostage deal, remains in the U.S. and is not attending.

Israel is effectively threatening Hamas by withholding prisoner releases, putting Thursday’s planned return of four deceased hostages at risk. The latest handover marks the end of the first stage of the hostage deal.

The current standoff follows previous warnings that Hamas would “pay the price” for returning the wrong body. U.S. President Donald Trump commented that Netanyahu is ” angry, and rightfully so ” and wants to resume fighting in Gaza.

However, the delay is not expected to derail negotiations entirely, as Israel seeks to secure both the return of the four additional hostages and an extension of the first stage to release more living captives.

Despite Hamas’ breach, the terror group quickly corrected the mistake, returning Bibas’ body within a day. Israeli officials believe the mix-up was likely an error rather than an intentional act.

Meanwhile, Israel has completed the largest single-day hostage release of the deal, freeing six hostages alive. Negotiation sources say this, along with Hamas’ swift correction regarding Bibas, provides hope for continuing the deal. Hamas wants to proceed to the deal’s second phase under the existing agreement, rejecting additional Israeli demands such as disarmament, exile and dismantling its military wing.

Israel believes that if a second-stage deal appears unattainable, Hamas may agree to extend the first phase in exchange for better terms, including changing Palestinian prisoner exchange ratios and increasing humanitarian aid, particularly caravans and construction equipment for Gaza.

Trump’s special envoy Steve Witkoff is handling negotiations and met with Dermer in Miami on Thursday. To bridge gaps, Witkoff is expected to pressure both sides into concessions.

Netanyahu, despite not admitting it publicly, is wary of the second phase, which includes a demand for Israel to complete its withdrawal from the Philadelphi Corridor by day 50 — a potential trigger for Smotrich to collapse his coalition.

Netanyahu’s interest is to extend the first phase, securing more hostage releases while prolonging the cease-fire.

Preparations for second-phase talks are underway, though details remain uncertain, including whether they will take place in Qatar or involve Witkoff shuttling between Doha, Cairo and Jerusalem. Israel will insist that mediators ensure the release of all hostages believed to be alive.

As reported by Ynetnews