Israel's Defense Minister Israel Katz announced Friday that the Israeli military will permanently seize territory within the Gaza Strip if Hamas refuses to release the remaining hostages, escalating the already devastating conflict. The announcement followed Israel's resumption of airstrikes and ground operations this week, breaking a two-month ceasefire. Over 590 Palestinians have been killed since the renewed offensive began, according to Gaza's Ministry of Health.

"I have instructed the IDF to seize additional areas in Gaza, while evacuating the population, and to expand the security zones around Gaza for the protection of Israeli communities and IDF soldiers," Katz said in a statement. He added, "The more Hamas persists in its refusal to release the hostages, the more territory it will lose, which will be annexed to Israel."

The remarks come as Israeli ground forces launched simultaneous invasions in northern and southern Gaza, including incursions into Beit Lahiya and Rafah, Gaza's southernmost city bordering Egypt. Local reports indicate residents received no prior evacuation warnings before Israeli troops entered their neighborhoods, and intense airstrikes and artillery shelling followed.

Katz further threatened to use "all military and civilian pressure tools," referencing "voluntary relocation plans" for Gaza residents, signaling a significant shift toward permanent Israeli control of portions of the enclave. The announcement coincides with Israel's closure of Gaza's main north-south road, further isolating communities and hindering humanitarian access.

Hamas issued a statement Friday asserting that it remains engaged with mediators in pursuit of a prisoner exchange deal. Hamas "remains at the heart of the negotiations, discussing the Witkoff proposal and various ideas on the table," the group said, emphasizing its aim to achieve a deal that would secure prisoner releases, end the war, and achieve withdrawal.

The breakdown in negotiations follows a fragile ceasefire agreement in January, during which Israel exchanged 1,800 Palestinian prisoners and detainees for the return of 25 living hostages and the bodies of eight others. A second phase of the ceasefire, which was intended to secure the release of all remaining hostages, never materialized. Netanyahu's government instead resumed hostilities, citing Hamas' refusal to continue releasing hostages.

Nearly 49,000 Palestinians have been killed in Gaza since the war began, according to Gaza health officials, figures deemed credible by the World Health Organization. Israeli losses from the Hamas-led October 7 attacks stand at roughly 1,200 killed, with around 250 hostages taken during that assault.

On the ground, the humanitarian crisis has worsened dramatically. UNRWA reported Friday that no aid supplies have entered Gaza for 18 consecutive days, the longest stretch since the conflict began. "This is the longest period since the start of conflict in October 2023 that no supplies whatsoever have entered Gaza," said UNRWA official Sam Rose.

Hospitals in the Strip are overwhelmed, with health workers warning that most facilities risk collapse due to lack of fuel and medical supplies. "Talking to doctors, they are saying that most of these injuries are very serious and most of the injured are children, women and the elderly," reported Al Jazeera correspondent Hind Khoudary from central Gaza.

White House press secretary Karoline Leavitt defended Israel's position Thursday, stating, "The president made it very clear to Hamas that if they did not release all of the hostages there would be all hell to pay." The Biden administration has yet to respond directly to Katz's annexation threat.