An Israeli source familiar with the matter said that Hamas leader Yahya Sinwar wants to reach a ceasefire agreement - at least that is the message conveyed by Egyptian and Qatari mediators to Israeli officials in recent days before a critical summit later this week, but it is still unclear whether the Israeli Prime Minister wants that or not.

Two Israeli sources said that Netanyahu's allies told journalists and other government officials that the Israeli Prime Minister is prepared to strike a deal, regardless of the impact on his ruling coalition. However, the Israeli security establishment remains more skeptical of Netanyahu's willingness to make a deal amid fierce opposition from the far-right ministers in his coalition.

The Israeli source added, referring to Netanyahu by his nickname: "No one knows what Bibi wants."

It is clear that Netanyahu will face immense pressure this week from the United States to agree to a ceasefire and release the hostages.

The Israeli source said that U.S. officials made clear to their Israeli counterparts that they believe the time has come to reach a ceasefire agreement now to avoid a broader regional war.

The Hostage and Missing Forum, a strong voice in Israel, has called for Israel and Hamas to finalize a hostage and ceasefire agreement.

The forum said in a statement on Thursday, "The agreement is the only way to bring all the hostages back home. Time is running out. The hostages have nothing more to spare. The agreement must be signed now!"

Meanwhile, Netanyahu's coalition partners have made it clear that they do not want Israel to reach an agreement with Hamas.

Israeli Finance Minister Bezalel Smotrich described the proposed ceasefire agreement as a "surrender deal" on Friday. He wrote on the social media platform X: "I urge the Prime Minister not to fall into this trap and not to agree even slightly to deviation from the red lines he recently set, which are also extremely problematic."

White House National Security spokesperson John Kirby criticized Smotrich's comments, stating that "his arguments are completely wrong."

However, Netanyahu's political future largely depends on his coalition partners - many of whom have already threatened to withdraw from the government and cause it to collapse if he agrees to the deal.

The Knesset (Israeli parliament) is currently out of session due to its summer recess, making it difficult - though not impossible - for Smotrich and National Security Minister Itamar Ben Gvir to dissolve the current government. Israeli sources indicated that Netanyahu might call for elections if a ceasefire agreement is reached, which would allow him to control the timing of such elections.

Delegations working "around the clock"

Mediators are scheduled to meet with Israeli and Hamas negotiating teams in Cairo or Doha next week. But the Israeli source said that negotiations are already ongoing with technical delegations working "around the clock" on the main details ahead of Thursday's meeting.

The talks come at a highly tense time in the Middle East. The assassinations of prominent figures in Lebanon and Iran in recent weeks have raised concerns about potential retaliatory reactions that could lead to a broader conflict.

Last week, Israel killed Fouad Shukur, the top military commander of Hezbollah, the Iran-backed Lebanese armed group. The following day, Israel is widely believed to have assassinated Hamas political leader Ismail Haniyeh in Tehran, which is seen as a significant embarrassment for the Iranian Revolutionary Guard who was hosting Haniyeh.

Israel has neither confirmed nor denied its involvement in this incident.

There are indications that Iran will reconsider the scope and timing of its response against Israel if there is a ceasefire in Gaza, a possibility that has placed additional pressure on Israel to reach an agreement to avoid the risk of a full-scale regional war.

Sinwar, the Hamas leader in Gaza and, according to Israel, one of the masterminds behind the deadly terrorist attack on October 7, has been appointed as the new head of the political bureau of the group following Haniyeh's assassination.

Sinwar has not been seen publicly since October 7 and is believed to be hiding in tunnels dug beneath Gaza. Haniyeh played a key role in the ceasefire negotiations, but Sinwar's role has been more limited due to difficulty communicating with the outside world.

The talks come after an Israeli raid on a school and mosque complex that resulted in dozens of deaths, sparking international outrage. Israel said it was targeting a Hamas command center and killed several militants.

U.S. Vice President Kamala Harris, the Democratic presidential candidate, said on Saturday that "too many civilians" have been killed in Gaza, adding that the agreement "must be made now."